Hasan Malek evades media over RM32 million Bank Rakyat loan scandal

The minister embroiled in the RM32 million Bank Rakyat loan scandal refused to take questions from the press today at an event in Kuala Lumpur.

Domestic Trade, Cooperative and Consumerism minister Datuk Seri Hasan Malek (pic) left immediately after launching the Malaysian Franchise Association's Annual General Meeting at the Putra World Trade Centre and waved off reporters who approached him to ask him about the scandal.

‎His officers told reporters that he was rushing for an urgent meeting elsewhere.

Yesterday, when The Malaysian Insider sent a text message to Hasan to get his comments over the controversial loan to carpet dealer Deepak Jaishikin, the minister had replied: "I'm at a meeting. I cannot return call".

He did not return the call nor answer the text messages sent to him.

Hasan was alleged to have interfered in a RM32 million loan given by Bank Rakyat to Deepak by instructing the bank to make it interest-free.

The bank's former chairman Tan Sri Sabbaruddin Chik, who exposed the scandal, had told The Malaysian Insider that Deepak had used his political connections to settle the loan without any interest calculated and had sought Hasan's intervention.

Deepak had offered 120 post-dated cheques to be cashed in by the bank over a 10-year period as the loan settlement without interest.

In The Malaysian Insider report ‎on Monday, Sabbaruddin had alleged that his tenure as the chairman of Bank Rakyat was not extended after he and the baord rejected Deepak's proposal.

Deepak had sought the assistance of Hasan, who had allegedly told the bank: "I can sack all of you".

Sabbaruddin had told the Bank Rakyat board of directors to initially reject the compromise offered by Deepak to settle his outstanding debt.

"Ten years to pay off a debt without interest, that means the bank will be the big loser in the end," Sabbaruddin had said.

According to Sabbaruddin, after the decision was made, Hasan was dissatisfied and refused to sign the letter extending his tenure as Bank Rakyat chairman.

"My term ended on April 8 and Bank Negara had agreed to extend my contract, but Hasan refused to sign it," Sabbaruddin had said.

Sabbaruddin had also showed The Malaysian Insider a letter signed by Hasan instructing Bank Rakyat to proceed according to the terms of the compromise.

The incident reached boiling point when Bank Rakyat managing director Mustafa Razak was instructed to raise the issue before the board of directors.

The board was instructed to agree with the method of repayment in March.