KUALA LUMPUR: Police should investigate the special deal offered to carpet dealer Deepak Jaikishan (pic) by Bank Rakyat over a RM32 million loan, Datuk Mahfuz Omar (PAS-Pokok Sena) said.

Mahfuz questioned Domestic Trade, Consumerism and Cooperatives Minister Datuk Seri Hasan Malek’s direct involvement in a loan restructuring deal involving Deepak and Bank Rakyat.

Deepak borrowed RM32 million from Bank Rakyat and offered to repay the loan interest free with 120 post-dated cheques over a 10-year period.

Hasan was severely criticised after it emerged that he had been directly involved in the loan restructuring deal. He defended his actions, saying it was done in the best interests of the bank’s shareholders.

Mahfuz said the government and minister should not have interfered. He questioned if late payment charges were factored into the special instalment deal and whether Bank Rakyat incurred losses.

Mohamed Hanipa Maidin (PAS-Sepang) questioned the special treatment for Deepak.

“It appears he is being protected,” Hanipa said.

Datuk Johari Abdul (PKR-Sungai Petani) said that it appeared not to be a Bank Rakyat management problem, but caused by outside pressure on the bank and its board of directors.

Mahfuz recalled that Bank Rakyat had struggled to re-establish itself after it nearly collapsed.

“Efforts should be made to protect the interests of the bank’s cooperative members, made up mostly of Malays and bumiputeras; don’t just talk about bumiputera and Malay rights,” he said when debating the Malaysia Co-operative Societies (Amendment) Bill 2014 yesterday.  — by Jennifer Gomez/The Malaysian Insider


This article first appeared in The Edge Financial Daily, on October 9, 2014.