Malaysian PM’s brother Nazir Razak takes leave from CIMB role amid 1MDB funds transfer inquiry
Leading corporate figure dragged into a scandal around political funding and alleged misuse of money from the state fund after reports he received US$7m from brother Najib Razak
The Malaysian prime minister’s brother, Nazir Razak, announced on Monday that he was taking voluntary leave of absence from his role as chairman of CIMB Group Holdings Bhd amid an independent review into money transfers to his personal account.
Nazir was dragged into a scandal around political funding and alleged misuse of money from state fund 1Malaysia Development Berhad (1MDB) after The Wall Street Journal reported last month that he received US$7 million in funds from his elder brother, Prime Minister Najib Razak, before the 2013 elections.
“Nothing I did was illegal or compromised my position at CIMB, but given the media attention, I understand that it makes the stakeholders uncomfortable. So, I want to make sure that the institution does the right thing in dealing with this,” Nazir told a news conference after the bank’s annual general meeting, explaining his decision to take leave.
Nothing I did was illegal or compromised my position at CIMB, but given the media attention, I understand that it makes the stakeholders uncomfortable
Nazir, a leading Malaysian corporate figure, had said earlier that he believed the money came from legitimate fundraising, and said that CIMB bank staff disbursed the funds to ruling-party politicians on the instructions of his brother.
At Monday’s news conference, the banker spoke of Najib’s request for assistance, and said it was the first and last time he had been asked for such help.
“My brother asked for some help and I agreed after I assessed that it would not involve anything illegal or misuse of my position at CIMB, or any inappropriate use of CIMB’s resources,” Nazir told a news conference after the bank’s annual general meeting.
“I acted based on what I knew at that time and of course, given all the controversy surrounding 1MDB and sources of political funding since 2014, I regret it,” he added.
The CIMB board has accepted Nazir’s decision to go on leave. The bank has engaged Ernst & Young to assist in the reviews.