Chairperson of the CIMB Group and brother of Prime Minister Najib Razak, Nazir Razak will begin a leave of absence from the company he heads beginning the end of this working day, to allow an internal review of his actions within the company.
Nazir’s decision stems from the speculation surrounding the transfer of USD7 million (RM27.5 million) into Nazir’s personal bank account from Najib in 2013.
According to a report by The Wall Street Journal earlier this month, The funds transferred to Nazir was part of more than 500 transfers from Najib’s accounts before the elections, the bulk of which went to politicians.
Reading from a statement to the press today, The New Straits Times Online quotes Nazir as saying, “I understand that since this matter [pertaining to political funding involving state-owned entity, 1MDB] has come into public domain, it has become a source of concern.
“I therefore support and welcome the board’s move which is to initiate a report from internal compliance and an external report by an audit firm.
“As an added measure of complete transparency of the internal review of the board, I have decided to take leave of absence ad chairman of CIMB Group and director of CIMB Bank, effective at the close of today’s trading day.”
Nazir decision to take leave after today was timed to allow him to address issue directly with CIMB’s shareholders, and for him to carry out his duties chairing the banking group’s annual general meeting today.
CIMB group CEO Tengku Zafrul Aziz said the internal review will take several weeks. He also said that in Nazir’s absence, no interim group chairman will be appointed.
Tony Fernandes, AirAsia’s group CEO and a close associate of Nazir’s, expressed his admiration for the banker’s decision to step aside to accommodate the probe on his personal Instagram account:
Nazir’s leave of absence will undoubtedly bring up comparisons to his older brother Najib, who has so far brushed aside calls from various quarters to take leave as Prime Minister to make way for fair and transparent investigations into his involvement in the scandals surrounding 1Malaysia Development Berhad (1MDB).
In his secondary capacity as Finance Minister, Najib is directly connected to the debt-ridden and scandal-plagued 1MDB, as the company is wholly owned by the Finance Ministry. Najib also serves as the chair of 1MDB’s board of advisers.
