The Department of Trade Union Affairs has lodged a police report against the National Union of Bank Employees (NUBE) for alleged financial discrepancies that were exposed by an external auditor.

Director-general Zulkifly Abdullah said today the report was lodged at the Putrajaya police station on Aug 14 by an officer from the department.

"We lodged the report against NUBE for alleged offences detected by the auditors. We did not name anyone in the report but NUBE would include both (rival) groups," he told malaysiakini when contacted.

"Our first priority is justice for the 28,000 affected NUBE members and bank staff. If the (union) leaders are not satisfied (with how things are handled), the courts are there."

NUBE has faced infighting for more than two years, following the ouster of general secretary J Solomon by another group led by then president Muhammad Fauzi Shamsuddin.

There were allegations of financial discrepancies going back to the time of Solomon's predecessor in the union, leading both into a bitter legal battle for legitimacy.

At present, the group led by president Abdul Jalil Hamid operates from the union's registered office, while Fauzi's team operates from other premises and even issues press statements using the union's stationery.

'Personal interests'

Zulkifly ( left ) said the government's main aim is to protect the interests of the workers and union members.

"This (infighting) has been going on for two years now and both sides are equally stubborn about staying in power although their legal status remains to be seen," he said.

"Both (groups) claim to take care of members' interests but instead of putting their house in order, they are splurging members' money on matters (that) pursue their personal interests."

In an immediate reaction, Solomon said the DG can act within his powers as long as it was done in good faith.

"But he should not bully NUBE or use unprofessional approach in dealing with the union. It is good that a police investigation is underway to clear the allegations," he told malaysiakini .

Last week, Human Resources Minister Dr Fong Chan Onn announced that the union could face legal action for financial mismanagement if sufficient evidence was found in the audit report which has been submitted to the Attorney-General's Chambers.

In welcoming the move, Solomon ( right ) had urged Fong to clarify the situation by naming those involved in siphoning out union funds amounting to RM1.2 million.

Fong also hinted at a possible de-registration of NUBE if all attempts to resolve the crisis fail.

Last Thursday, a group of union members urged the government not to resort to de-registration, instead urging that swift action be taken against the wrongdoers. They also called for more transparency in the way the matter is being handled.

Audit report

They wanted the audit report to be made public and for a copy to be given to the NUBE officials - meaning Abdul Jalil's group, who were voted into office last year.

Responding to this, Zulkifly said the report is expected to be released in two weeks' time.

"Once we get the feedback from the AG's Chambers, the minister said he will release it," Zulkifly said.

On another allegation by NUBE members and officials that the external audit fee was too high, he described this as "more of a diversion" from the real issue.

"Firstly, the audit fee is a subjective issue. In this case, we specially requested for an investigative audit, which includes visits to six NUBE offices and probes into their accounts," he explained.

"But the parties are now trying to sidetrack from this issue, when the alleged offences by the union based on the audit report still remain."

He said fixing the quantum of the audit fee was a collective decision made within the ministry and was not his alone.

Asked if a notice had been sent to initiate de-registration of NUBE, Zulkifly said this would only be issued when "we decide specifically to de-register it".

"But we have not reached that stage yet. They (both factions) should come to a settlement soon if they want to avoid getting de-registered."

Earlier this year, Zulkifly had mooted the idea of fresh elections to resolve the long-standing dispute. The idea was supported by Abdul Jalil's group on condition that Zulkilfy endorsed the mandated line-up.

However, the director-general declared in early July that he was not empowered to call for elections.