The government's statement that it is considering legal action against the National Union of Bank Employees (NUBE) for alleged misappropriation of funds has caused additional confusion among associated parties, said a union official.

Yesterday, Human Resources Minister Dr Fong Chan Onn said the ministry was consulting government lawyers on the evidence available before initiating action against the NUBE, based on a recently-concluded audit report on the union's accounts.

Referring to press reports today, NUBE general secretary J Solomon said the headlines based on Fong's statement had "caused widespread confusion and fear" among members and associated organisations.

"Insurance companies and others have been calling us the whole day after seeing these headlines," he said when contacted.

Reacting to Fong's statement, Solomon said members would welcome any investigation or action on the alleged misappropriation of funds.

Letter to minister

The union sent a letter to Fong today explaining the sequence of events and related court rulings arising out of infighting within NUBE over the past two years, after Solomon was ousted in October 2001.

It contains the names of eight suspended and expelled members, the file numbers of the appeal matters pending and court orders, and the quantum recovered from the RM1.2 million withdrawn in February from the union's accounts.

"We have requested the ministry to clarify the report on the unlawful removal of funds and name the individuals responsible, rather than refer to the NUBE as having committed the unlawful act," Solomon said.

He said the minister should have made it clear that the action would be against members of the rival faction led by ex-NUBE president Muhammad Fauzi Shamsuddin. Some in this group have been suspended or expelled from the union.

Solomon's group, aligned to current president Abdul Jalil Hamid, occupies the union's registered premises in Lebuh Ampang, Kuala Lumpur.

The union filed committal proceedings against 15 members and former officials in Fauzi's group for removing funds from the union's accounts into several private accounts.

Missing money

The lawyer who acted for Fauzi's group was named a party in contempt proceedings for allegedly obtaining a court order by deception, leading to the cash withdrawals.

Fauzi's faction had allegedly used the court order dated Feb 22 to withdraw the money within two days from three accounts in Bumiputra-Commerce Bank Bhd and Ambank Bhd.

The group had claimed that this was done to prevent Abdul Jalil's group from misusing the funds.

After NUBE obtained a court order in early March, about half of the missing funds were returned. The rest remains unaccounted for.