Nazir Razak to resume role as CIMB Group chairman on Thursday

The findings from the review concluded that Datuk Seri Nazir Razak did not misuse his position as the group chief executive at that time nor was there any inappropriate use of the bank

KUALA LUMPUR: Datuk Seri Nazir Razak will resume his role and position as chairman of CIMB Group Holdings Bhd and director of CIMB Bank Bhd from Thursday as a review showed he did not misuse his position nor  was there any inappropriate use of the bank’s resources when he was then the group chief executive.

The boards of the group and bank announced in a statement on Wednesday that his return marks the completion of a comprehensive review conducted by the boards, which started on April 5, 2016.

Nazir has been on a voluntary leave of absence since April 19 to ensure the complete independence and integrity of the review of the banking activities taken by the boards relating to his personal account, reported by the Wall Street Journal on March 31.

The boards had appointed an external audit firm, Messrs. Ernst & Young and sought independent legal advice to assist them with the review. 

“The findings from the review concluded that Datuk Seri Nazir Razak did not misuse his position as the group chief executive at that time nor was there any inappropriate use of the bank’s resources. 

“However, the detailed examinations conducted during the review identified some process shortcomings, and the boards have instructed the management to put in place plans for immediate improvements as well as strengthened internal rules and processes to avoid re-occurrences moving forward,” the statement said.

Representing the boards, senior independent director and chairman of the audit committee of CIMB Group, Datuk Mohd Nasir Ahmad said:

“The boards welcome Datuk Seri Nazir Razak back to serve as chairman of CIMB Group and director of CIMB Bank. 

“The boards are committed to maintaining the highest standards of corporate governance in our organisation, and this decision was taken with firm intent towards fulfilling these obligations. 

“Apart from the findings of the review, the boards also took into consideration the vote of confidence from shareholders for Datuk Seri Nazir Razak’s continued chairmanship at our 2016 Annual General Meeting as well as his track record of serving the Group in various capacities since 1989, in arriving at the decision," the statement said.