KUALA LUMPUR (April 18): CIMB Group Holdings Bhd has hired Ernst & Young to conduct an independent review on the transfer of US$7 million cash by its chairman Datuk Seri Nazir Razak to Barisan Nasional politicians before the General Elections in 2013.

Speaking to a room packed with reporters after CIMB's 59th annual general meeting (AGM) today, Nazir, the brother of Prime Minister Datuk Seri Mohd Najib Abdul Razak, asserted the legality of the fund transfer and that he had not compromised his position.

Nazir has been re-elected as the chairman at the AGM this morning. He said the independent review on the transfer of funds was done on a voluntary basis to ensure the integrity of the corporate governance.

This independent review will be done while Nazir is taking a leave of absence from CIMB, which will begin at the end of business hours today.

Nazir said he is looking forward to the independent review's outcome, which he estimated will require a few weeks to be completed.

"And then the board will decide whether they still want me to remain in my position or not," he said.

Shedding light on the independent review, he said a board meeting was held on April 5 where Nazir was invited to explain his side of the story on the fund transfer. After that, he excused himself from the meeting for the board to discuss the next necessary step.

By the end of the meeting, CIMB's board of directors decided that a review by an external body should take place, with the external party being audit firm Ernst & Young.

"I was very clear of my legal position," Nazir asserted when asked why it took him three years to come clean on the fund transfer. "So, what [was] there to talk about before (the report leaked)?"

However, since the issue came to light, Nazir said he and CIMB are taking a proactive approach to instil transparency within Malaysia's second largest bank and also to preserve the integrity of its corporate governance.

But given the controversy surrounding the government's wholly-owned subsidiary 1Malaysia Development Bhd (1MDB) that became the probe target of the international community, Nazir said he regretted being involved with the transfer as he "got dragged into the conversation".

At the time, he said that it was merely a favour to his brother Najib. And knowing that there was no illegal wrongdoing on his part by helping his brother, he proceeded with the transactions.

"I've been in this (banking) business for 26 years, and I've survived this long by knowing the legalities (and ethics)," he said.

When pressed by the media, Nazir said that the time in 2013 was the only instance that he had helped Najib to transfer funds for political activities.