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Saturday, August 3, 2013

New Maybank boss urged to explain 'RM1.74b' fiasco


DAP has called on newly-appointed Maybank chief executive officer Abdul Farid Alias to explain the bank's potential lost of up to RM1.74 billion by disposing its stake in Bank Internasional Indonesia (BII).

DAP's Petaling Jaya Utara MP Tony Pua said Maybank made no mention of the price or buyer after selling 5,065,380,000 shares or 9 percent of the issued and paid-up share capital of BII in a June announcement.

Furthermore, he said according to a report by The Edge, banking sources said the 9 percent stake was sold at Rp355 despite Maybank initial purchase price at Rp455 in 2008 and its chairperson saying in January last year that Maybank would not sell down its stake in BII if it was going to make a lost.

"This 9 percent stake sale will immediately translate to an estimated realised loss of RM157 million and if these loss is extrapolated, Maybank could be looking at potential loss of RM1.74 billion.

"The price of the transaction is crucial because that will determine if Maybank had made and realised loses in the sale in the light of fierce criticism it received from all parties during the acquisition in 2008," he said in a statement today.

BII was acquired by Maybank at the cost of RM8.25 billion at approximately Rp455 per share in 2008.

Worst still, Pua said BII shares closed at Rp315 last week or 30.7 percent drop from the acquisition price.

"At this price, Maybank is already staring at staggering paper losses of RM2.5 billion as a result of the BII acquisition," he said.
Maybank to relinquish more shares?

He added that despite Maybank announcing that the disposal of shares in BII will not result in any material financial impact to the group, evidence points to the contrary.

"It is crucial now for Maybank to come clean... More losses will likely be realised when Maybank is forced to sell another 8.3 percent of BII shares to third parties by Dec 31 2013.

"Thus we hope Farid will take the necessary steps to explain and clarify the above investment losses and make Maybank an example to follow with regards to corporate governance, transparency and accountability.

Farid replaces Abdul Wahid Omar who is now Minister in the Prime Minister's Department.

Pua on July 23 sought an explanation from Prime Minister Najib Abdul Razak, who is also finance minister on the matter but had yet to receive any response.

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