CIMB chairman Nazir Razak to resume duties after review into money transfers

Reuters News
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Posted: May 18, 2016 7:57 AM

KUALA LUMPUR (Reuters) - Nazir Razak, the brother of Malaysian Prime Minister Najib Razak, will resume his duties as the chairman of CIMB Group Holdings Bhd after an independent review found that he had not misused his position at the bank in transferring political funds from his personal account.

Nazir announced on April 18 that he was taking a voluntary leave of absence and that a review would be conducted into reports that he had helped disburse $7 million in funds to ruling party politicians on the instructions of his elder brother Najib before the 2013 elections.

CIMB, Malaysia's second-biggest lender by assets, said in a statement on Wednesday the findings of the review concluded that Nazir "did not misuse his position" and there was no inappropriate use of the bank’s resources.

However, the bank said the review had identified some process shortcomings which would be rectified.

Nazir, a leading Malaysian corporate figure, had said earlier that he believed the money came from legitimate fund-raising, and that nothing he did was illegal or compromised his position at CIMB.

But the revelations dragged Nazir into a multi-billion dollar graft scandal around state fund 1Malaysia Development Berhad and the transfer of $681 million into the personal bank account of the prime minister.

Najib has denied any wrongdoing, saying that he had not taken any money for personal gain.

(Reporting by Rozanna Latiff; Editing by Nick Macfie)