This article first appeared in The Edge Financial Daily on November 30, 2018

KUALA LUMPUR: The Entrepreneur Development Ministry has identified a candidate to be appointed chairman of Bank Rakyat, but is awaiting central bank approval, according to its Minister Datuk Seri Mohd Redzuan Md Yusof.

“Currently we are waiting for Bank Negara Malaysia’s feedback, to ensure the successor has the right criteria to manage Bank Rakyat’s funds and to grow its business,” Mohd Redzuan told reporters at Parliament lobby yesterday.

“What I can guarantee is the candidate is someone who is professional, possesses world-class experience in managing a bank and he is not a politician.”

He said he hopes to appoint the new chairman by the end of the year, adding that his Ministry does not see the need to remove any of the other directors.

On Monday, Tan Sri Shukry Mohd Salleh was removed as chairman of the bank over his alleged involvement in the tampering of the original audit report on 1Malaysia Development Bhd (1MDB) when he was chief private secretary to former Prime Minister Datuk Seri Najib Razak.

The involvement was only recently revealed and ended any hopes of Shukry finishing his contract even though Mohd Redzuan disclosed his ministry had initially intended to let him complete his contract.

“We wanted to wait until his contract ended before changing the leadership, but due to recent developments, which involved his integrity — some even described it as treason — I did not hesitate to sack him as Bank Rakyat chairman.

“The question of being charged or not [for tampering the audit report], that is immaterial to me. Once you are tainted, the perception will be negative towards Bank Rakyat, so why do we need someone whose image is tainted to lead Bank Rakyat? We have to be firm, whoever it is, tampering an audit report is treason, that is not right, so I have to sack him, to promote someone who has no integrity issues.”

Unless there is a need, other board members would be retained, he said.

“Our approach is not to inflict collateral damage, we want gradual process of reform. We will review and investigate decisions made by the previous management, (and) if there is a need for change, we will do it, if there is a need to destroy the legacy of former chairman, we will do it.”