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Temasek’s Alliance Financial Group internal probe, top execs on forced leave
January 6, 2010
No smoke without a fire? News from across the Causeway, and why we in HDBland should be at least 29% interested in developments affecting Alliance Financial Group.
First, on 4 Jan, from Reuters “Alliance shares down on probe report”
Temasek’s Alliance Financial Group internal probe, top execs on forced leave
January 6, 2010
No smoke without a fire? News from across the Causeway, and why we in HDBland should be at least 29% interested in developments affecting Alliance Financial Group.
First, on 4 Jan, from Reuters “Alliance shares down on probe report”
SHARES of Malaysia’s Alliance Financial Group Bhd fell after its unit Alliance Bank, one of the country’s smallest lenders, reportedly put several top executives on forced leave pending an internal probe.
Several top managers were told to go on leave just before Christmas as the bank investigated a share purchase transaction and a deal involving the sale and leaseback of several multi-storey commercial buildings, the New Straits Times reported.
The stock fell 6.7 per cent to RM2.52 at the 12.30 pm break, its biggest drop since October 28, 2008.
“We expect that the financial impact, if any, would be minimal and one-off,” said Kenanga Investment Bank in a note published today.
Singapore’s state investor Temasek Holdings owns 29 per cent of Alliance Financial via Vertical Theme Sdn Bhd, and Malaysia’s largest pension fund, the Employees Provident Fund, owns 13.9 per cent.
Followed by a quick update on 5 Jan “Alliance Bank said to have put several top execs on forced leave”Several top managers were told to go on leave just before Christmas as the bank investigated a share purchase transaction and a deal involving the sale and leaseback of several multi-storey commercial buildings, the New Straits Times reported.
The stock fell 6.7 per cent to RM2.52 at the 12.30 pm break, its biggest drop since October 28, 2008.
“We expect that the financial impact, if any, would be minimal and one-off,” said Kenanga Investment Bank in a note published today.
Singapore’s state investor Temasek Holdings owns 29 per cent of Alliance Financial via Vertical Theme Sdn Bhd, and Malaysia’s largest pension fund, the Employees Provident Fund, owns 13.9 per cent.
Alliance Bank Malaysia Bhd, the flagship Malaysian bank of Temasek Holdings and the investment arm of the Singapore government, is believed to have placed several of its top managers on forced leave pending completion on an informal internal investigation, people familiar with the matter said yesterday.
Business Times (BT) understands that the officials, who also include several branch level managers, were forced to go on leave just before Christmas, pending completion of the investigation.
Sources further say that at least one senior official had offered to resign over the matter.
Alliance Bank’s assistant vice-president of group corpororate affairs Agnes Ong Poh Choo declined to comment on the matter. She also declined comment on queries that the bank’s group chief executive officer Datuk Bridget Lai had tendered her resignation.
“We will need to decline to comment on these statements,”she said in an e-mail statement to BT.
Finally, a response was forthcoming from 6 Jan. From The Star (MY) “Alliance Bank: There’s no change in operations”Business Times (BT) understands that the officials, who also include several branch level managers, were forced to go on leave just before Christmas, pending completion of the investigation.
Sources further say that at least one senior official had offered to resign over the matter.
Alliance Bank’s assistant vice-president of group corpororate affairs Agnes Ong Poh Choo declined to comment on the matter. She also declined comment on queries that the bank’s group chief executive officer Datuk Bridget Lai had tendered her resignation.
“We will need to decline to comment on these statements,”she said in an e-mail statement to BT.
Amidst intense speculation over the position of Datuk Bridget Lai, group chief executive of Alliance Bank Bhd, the bank issued a statement yesterday to confirm that she had not resigned and that it was business as usual.
“Datuk Bridget Lai has not resigned. There is no change in the bank’s operations and we stress that it is business as usual for our customers, stakeholders and employees,’’ Alliance Bank said in its statement to Bursa Malaysia.
“The bank carries out investigations as part of its due diligence on corporate governance and board oversight,’’ the statement added.
Sources told StarBiz that Lai’s contract was approved by Bank Negara for renewal in September.
A tide of rumours had surfaced since Monday regarding Lai who is on annual leave, as group chief operating officer Shim Kon Teck is also said to be on leave.
The acting CEO is Choo Joon Keong, head of corporate banking.
A news report yesterday said Alliance was believed to have placed several of its top managers on forced leave pending completion of an internal probe.
The report went on to say that at least one senior official had offered to resign over “the matter’’.
In reaction, parent Alliance Financial Group’s shares shed 18 sen or 6.67% to close at RM2.52 yesterday, on a volume of 26 million shares.
Industry watchers are in shock and wondering what could have happened to the “Iron Lady of consumer banking.’’
It is said that Lai spent some time at Bank Negara yesterday morning explaining the situation; however, in matters pertaining to governance issues, it is the chairman and the bank’s board that will clarify on the position of their CEO.
In a statement, Lai said: “I am aware that rumours are circulating in the market that I have resigned from my post as group CEO of Alliance Bank. I wish to confirm that this is wholly untrue and that I have not resigned from the bank.
“I am aware that the rumours circulating are highly defamatory in nature and I wish to state that the rumours are again wholly untrue and without basis.
“The business of the bank continues and will continue as usual,’’ she added.
Some background on dear Bridget.“Datuk Bridget Lai has not resigned. There is no change in the bank’s operations and we stress that it is business as usual for our customers, stakeholders and employees,’’ Alliance Bank said in its statement to Bursa Malaysia.
“The bank carries out investigations as part of its due diligence on corporate governance and board oversight,’’ the statement added.
Sources told StarBiz that Lai’s contract was approved by Bank Negara for renewal in September.
A tide of rumours had surfaced since Monday regarding Lai who is on annual leave, as group chief operating officer Shim Kon Teck is also said to be on leave.
The acting CEO is Choo Joon Keong, head of corporate banking.
A news report yesterday said Alliance was believed to have placed several of its top managers on forced leave pending completion of an internal probe.
The report went on to say that at least one senior official had offered to resign over “the matter’’.
In reaction, parent Alliance Financial Group’s shares shed 18 sen or 6.67% to close at RM2.52 yesterday, on a volume of 26 million shares.
Industry watchers are in shock and wondering what could have happened to the “Iron Lady of consumer banking.’’
It is said that Lai spent some time at Bank Negara yesterday morning explaining the situation; however, in matters pertaining to governance issues, it is the chairman and the bank’s board that will clarify on the position of their CEO.
In a statement, Lai said: “I am aware that rumours are circulating in the market that I have resigned from my post as group CEO of Alliance Bank. I wish to confirm that this is wholly untrue and that I have not resigned from the bank.
“I am aware that the rumours circulating are highly defamatory in nature and I wish to state that the rumours are again wholly untrue and without basis.
“The business of the bank continues and will continue as usual,’’ she added.
Starting as a bank teller, Lai became the first Malaysian to head Standard Chartered Bank’s consumer business, and was headhunted in 2005 by Temasek Holdings Pte Ltd which had bought a 29% stake in Alliance.
She rose through the ranks to become StanChart’s group head of sales, marketing and distribution for its global network.
She was based in Singapore when Temasek spotted and courted her for half a year before she decided to quit a successful career at StanChart spanning three decades.
She rose through the ranks to become StanChart’s group head of sales, marketing and distribution for its global network.
She was based in Singapore when Temasek spotted and courted her for half a year before she decided to quit a successful career at StanChart spanning three decades.
