KUALA LUMPUR (Aug 30): Bank Kerjasama Rakyat Malaysia Bhd (Bank Rakyat) announced it has appointed an acting chairman today, after convening a special board of directors meeting.
The appointment was made after obtaining the approval from the Minister of Domestic Trade, Cooperatives and Consumerism, it said in a statement today.
“The board resolved to appoint one of the board members as the acting chairman of Bank Rakyat, after getting an approval from the minister and to establish a board oversight committee (BOC) to which the management shall report,” it said.
Bank Rakyat said among the committee's duties is to ensure smooth operations of the bank, and that it complies to the standards set by Bank Negara Malaysia in its banking processes.
The BOC, effective immediately, would identify steps to be taken to improve the bank’s management, said the bank which comes under the control of the ministry.
“The management of Bank Rakyat will ensure that Bank Rakyat will operate its business as usual, and continue to serve its customers with no disruption to its business,” it said.
Bank Rakyat's announcement came on the heels of news reports that the chairman of the bank with the title of 'Tan Sri' has been remanded for seven days from today, to assist in investigations into the misappropriation of funds in a RM15 million book publishing contract.
Media reports said that the chairman has been remanded by the Malaysian Anti-Corruption Commission till Sept 5, to assist in investigations involving a book project worth RM15 million, and a project to upgrade the bank’s information technology system.
MACC was quoted as saying yesterday that his bank account, containing almost RM1 milion, has been frozen.
He is the third official from the bank detained by the MACC, over the case. Four others — the managing director of the same bank and with the title of 'Datuk', the bank's former director of procurement, and two publishing company owners — whose remand period ended today, were released by the MACC, upon completion of investigations.