THE Minority Shareholders Watch Group (MSWG) is set to query CIMB Group Holdings Bhd at its forthcoming annual general meeting (AGM) with regard to reliability and integrity of the banking group’s information technology (IT) systems which has tarnished CIMB Bank Bhd and CIMB Islamic Bank Bhd’s standing as a reliable and reputable financial institutions.
Recall that in January, the group identified errors that were related to a specific third party financial remittance service which led to a group of customers receiving duplicate credits in their accounts.
“How many customers/accounts were affected by these processing errors? What is the total amount involved?” the shareholder activism group pointed out in a set of questions directed to CIMB Group for its virtual 65th AGM slated for April 21 (Thursday) at 10am.
Probing further into the matter, MSWG wants to know what was the outcome of CIMB’s recovery engagement with customers and how much of the wrongly credited monies have been recovered by CIMB.
“What has gone wrong with CIMB’s transaction processing infrastructure that resulted in this error? Were the weaknesses in CIMB’s processing infrastructure identified in the group’s internal audit reports previously?” asked MSWG.
Delving deeper into the incident, the shareholder activism group is further curious to know what has been the directives from Bank Negara Malaysia (BNM) to CIMB following those processing errors that both CIMB Bank and CIMB Islamic Bank encountered.
“What are the remedial actions taken to address these processing errors? How does the group plan to prevent similar errors from occurring in the future?” questioned MSWG. “When will the group complete the ‘major review’ of mitigating controls, policies and procedures surrounding its transaction processing infrastructure?”
With reference to its financial statements, the shareholder activism group also wishes to know if CIMB Group had provided an expected credit losses (ECL) of RM280.9 mil in its FY2021 due to this incident.
“What percentage of these impairments are expected to be recoverable?” asked MSWG.
Last but not least, MSWG is keen to know why despite CIMB’s effort to resolve this incident amicably, a group of 650 CIMB Bank account holders were reported to have filed a RM650 mil class-action suit against the bank for negligence over a processing error that left their accounts frozen and in debt.
“What is CIMB’s stance on this issue?” asked the shareholder activism group.
At 11.56am, CIMB Group was down 2 sen or 0.39% to RM5.12 with 7.17 millon shares traded, thus valuing the company at RM52.33 bil. – April 15, 2022
