KUALA LUMPUR (April 18): CIMB Group Holdings Bhd's chairman Datuk Seri Nazir Razak has told shareholders of the country's second largest bank that he will take a leave of absence effective today, as investigations commence on the distribution of money to Barisan Nasional politicians before the General Elections in 2013.

"The leave of absence is effective today, and it will be until the internal investigations have ended," said a shareholder who attended the meeting this morning.

Another shareholder said CIMB's board has hired an external body to conduct the investigation.

In a statement issued later this afternoon, CIMB said the board of directors had announced at this morning's AGM that Nazir will take a voluntary leave of absence from his positions as chairman of CIMB and director of CIMB Bank Bhd, with effect from close of business today till the completion of an ongoing board review on the banking activities relating to his personal account, first reported by the Wall Street Journal on March 31.

The board review has commenced on April 5 and the review is expected to complete in a few weeks.

The board also appointed an external audit firm Messrs Ernst & Young to assist with the review.

Representing the board, senior independent director and chairman of CIMB Bank board Datuk Zainal Abidin Putih said: "This decision was taken voluntarily by Nazir. Having served alongside Nazir on the board, the members have always been convinced that he upholds the highest standards of corporate governance. While this decision of his is contrary to the board's wishes, we respect and accepts his decision."

“The reputation and well-being of this banking group has always been my utmost priority," said Nazir.

"Unless I am completely absent from the company during this period, this institution would not be practicing the highest standards of corporate governance that we want to stand for, and I would be undermining what I have described as my utmost career priority,” he added.