|
Written by Regina William, The Edge DAP secretary-general Lim Guan Eng called on Bank Negara Malaysia (BNM) to act against those responsible for Malayan Banking Bhd's (Maybank) acquisitions of PT Bank International Indonesia (BII) and Pakistan's MCB Bank which caused nearly RM2 billion in impairment losses for the bank.
In a statement today, Lim who is also the Penang chief minister said action must be taken on the reckless acquisitions which resulted in Maybank's net profit for the fiscal year ended June 30, 2009, plunging 76% to RM692 million as a result of impairment losses of RM1.62 billion and RM353 million for the acquisitions of BII (in March 2008) and MCB Bank respectively.
"In order to protect Prime Minister Datuk Seri Najib Razak's credibility for financial soundness and accountability, BNM must take action against those responsible. Even though Maybank was advised not to proceed with the acquisition, it had pressed on to spend an incredible RM10.8 billion to acquire banks in Indonesia, Pakistan and Vietnam, months before the global financial crisis erupted last year. Now Maybank conceded that it has lost RM2 billion in these investments in over a year," he said.
However, Lim said if other losses due to exchange rate fluctuation and amortisation were considered, Maybank lost not just RM2 billion but RM2.73 billion. He said Maybank bought BII for RM7.9 billion which is worth only RM5.77 billion now and paid RM2.87 billion for MCB Bank which is worth RM2.25 billion now.
"In other words, Maybank incurred RM2.13 billion loss for BII and RM620 million loss for MCB Bank for a total loss of RM2.73 billion.
"Public interest demands that action be taken against those who squandered Maybank's funds in these doubtful investments. We do not know how much of the RM10.8 billion investments will be left and this large sum, if distributed, would allow each and every 27 million Malaysians to get RM400.
"Why did Maybank proceed with the purchase despite every advice not to do so?," he questioned.
He said as Maybank is owned by the government, the public has every right to demand full public accountability and action against those responsible for such reckless management decisions that caused losses of RM2.73 billion.
Lim said in the light of the world economic recession brought about by the global financial crisis, markets must be subjected to stronger oversight.
He said a good starting point for delivery would be to take action against those responsible for Maybank's huge losses.
"BNM must send an unmistakable message that Malaysia is a worthy destination for global capital finance that has a level playing field which plays by the rules of law, enforced impartially and committed towards competency, accountability and transparency," he added.
 |
The Blogs 
