Ambank Group shakeup in January due to RM2 billion loan to 1MDB, claims PKR

PKR secretary-general Rafizi Ramli is hopeful that Bank Negara will reveal the results of compliance audits on local banks which have given loans to 1Malaysia Development Berhad. – The Malaysian Insider pic, March 3, 2015.PKR has charged today that the departure of Ambank Group Berhad (AMMB)'s group managing director Ashok Ramamurthy in January was related to a deal with controversial 1Malaysia Development Berhad (1MDB).

Party secretary-general Rafizi Ramli, at a press conference today, claimed that his resignation was allegedly due to a RM2 billion loan given to the strategic investment fund's Bandar Malaysia property development project.

Citing information from a "whistleblower", he claimed Ashok resigned on January 21 after Bank Negara Malaysia (BNM) conducted a compliance audit on the banking giant and discovered a few "irregularities" related to the loan.

He also alleged that besides Ashok, two other senior officials have also resigned.

Commending the central bank's move, Rafizi said, "this raises the question on other banks which have granted loans to 1MDB".

"Bank Negara Malaysia must expose other compliance audits on all local banks which have given loans to 1MDB to enable Members of Parliament and the public to evaluate how 1MDB loans affect the stability of the country's banking sector," he said at PKR headquarters.

- TMI