THE appointment of Datuk Seri Nazir Razak (left), the brother of former Prime Minister Datuk Seri Najib Razak, as the new chairman of Bank Pembangunan Malaysia Bhd effective yesterday (April 22) has raised eyebrows within banking circles.
But it has nothing to do with his job experience or banking industry know-how given that Nazir, 54, has helmed CIMB Group Holdings Bhd as chairman for four years and was the group CEO for 15 years prior to that.
Obviously, Nazir could play a big part in the creation of a super DFI (development finance institution) by orchestrating a merger of Bank Pembangunan (which will take the lead in the exercise), Danajamin Nasional Bhd, Export-Import Bank of Malaysia Bhd (Exim Bank) and SME Bank.
In fact, Nazir had already been touted as a frontrunner for the post for almost two months following the retirement of Datuk Zaiton Mohd Hassan in February.
The key issue here is the principle – or oversight – behind Nazir’s appointment.
To put it bluntly, how can a somewhat tainted banker be appointed to helm a development bank which has been mandated to support the Malaysian economy by assisting entrepreneurs in small and medium-sized industries?
Incorporated in 1973, Bank Pembangunan which boasts a group total assets value of RM25bil as of Dec 31, 2019 provides medium to long-term financing to sectors of strategic importance to the nation and places particular importance on impact financing, which channels capital to address social issues and development priorities.
Recall that on Oct 7, 2019, Nazir was fined an unspecified amount alongside other individuals and companies for allegedly receiving money from the now-defunct state investment fund 1Malaysia Development Bhd (1MDB).
Former Malaysia Anti-Corruption Commission (MACC) chief commissioner Latheefa Koya, had stated that RM420 mil was received by a total of 80 individuals and entities from 1MDB.
“We have issued compound notices against all of these people and entities for the purpose of them to pay up the fine,” Latheefa told reporters, adding that the culprits could be fined up to 2.5 times the amount received.
The individuals include Nazir and Tan Sri Shahrir Abdul Samad, former chairman of state palm oil agency Federal Land Development Authority (Felda) and Minister of Domestic Trade and Consumer Affairs in Najib’s Cabinet.
Nazir had received about RM25.7 mil in cheques from 1MDB, Latheefa had revealed.
One wonders if Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz – who himself succeeded Nazir as the group CEO of CIMB Group Holdings in September 2014 – has taken the ’let bygones to be bygones’ stand in sanctioning Nazir’s appointment given that Bank Pembangunan is owned by the Ministry of Finance (MoF). – April 23, 2021
Photo credit: The Star
