The Human Resources Ministry's move to dispatch an auditor to inspect the accounts of the National Union of Bank Employees (NUBE) is most welcomed "but that still does not address the prevailing issue urgently", said an union official today.

NUBE elected general secretary J Solomon said it would be better if the ministry could ensure that the balance of the RM1.2 million withdrawn from the union's coffers is returned immediately.

Asked if the ministry had told him anything about the proposed audit , Solomon said he o­nly knew about this from the newspapers.

Tracking mismanagement

"There has been no formal communication o­n it, but we welcome the move as it provides an opportunity for the ministry to record previous instances of financial mismanagement," Solomon said when contacted.

"However, it would be better if the ministry can first ensure that the total withdrawn sum is returned soon.

"We feel the matter is very urgent, which is why we immediately obtained the court order the moment we heard about the withdrawals," he added.

Solomon ( photo ) said the union was more concerned with what will happen to the remaining funds in the hands of expelled and suspended officials.

He maintained that internal stability in the union would prevail if the ministry's Trade Union Affairs Department endorses the official line-up as elected by the members last year.

Date fixed

On Feb 26 and 27, 15 members and ex-officials walked away with RM1.2 million from two banks within 24 hours following an interim order against named elected officials, preventing them from handling the union's main accounts.

Two days later after the monies were deposited into joint personal accounts, the Kuala Lumpur High Court ordered it to be returned immediately, failing which contempt proceedings would follow.

Today, the High Court fixed March 21 to hear the contempt proceedings against the 15, as well as lawyer D Kalaimani who allegedly obtained the interim injunction by deception. The matter will be heard by Justice Azmel Maamor.

Of the 15, eight are expelled and suspended union officials - former president Muhammad Fauzi Shamsuddin * [correction ] , A Prathiba Raj, Abd Malek Daud, Mohd Azhar Yusof, S Kandaiyah, Mohd Noor Basir, Jamal-ud-deen Nasir Khan and Toh Seng Hock.

The other seven are NUBE members Nor Azlan Abd Hamid, Arnold Owen Rodriguese, Zainudin Sies, Nor Azman Abd Rahman, Mohd Zan Majid, Zulfazli Johari and Mohd Raduan Abdul Kadir.

So far, the rival faction led by Muhammad Fauzi has returned RM602,060 to the union account in Bumiputera-Commerce Bank Bhd.

The balance plus another RM654,060 withdrawn from Ambank Bhd is pending, making it a total of RM664,088.40 still owing to the NUBE.

Long-standing feud

Over the last few years, both sides have lodged numerous police reports and counter-reports against each other, the most recent of which was against Muhammad Fauzi's group for attempting to forcibly enter the union office last week.

Both Muhammad Fauzi's group and the current official line-up led by elected president Abdul Jalil Abdul Hamid have been involved in a protracted legal battle to determine the legitimate leadership.

After 18 years of existence, the 28,000-strong union elected its office-bearers for the first time last July. Previously, officials were appointed from among the central executive committee.

But the decision of the Trades Union Affairs department to endorse Muhammad Fauzi's line-up is currently being challenged in court by the latter.

The internal feud has also led to certain banks scrapping an understanding with NUBE o­n the automatic deduction of union subscriptions from the employees' salary or the check-off facility.


Correction : Muhammad Fauzi Shamsuddin is former NUBE deputy president, not the union's former president. We regret the error.