Malacca chief minister Mohd Ali Mohd Rustam has been urged by a social reform group to substantiate his allegations that employees at two banks had breached confidentiality by posting details on clients' transactions on the Internet.

Aliran president P. Ramakrishnan told malaysiakini today Mohd Ali had not provided any proof to his claims last week that workers at two commercial banks - Bank Islam and Bumiputra-Commerce Bank - had copied cheques issued by the state government and posted them on the Internet.

"What we have heard to date are mere claims by the chief minister and he owes it to the public to substantiate them and for the banks to then take disciplinary action quickly against the errant employees.

"If Mohd Ali fails to back up his allegations, he would be guilty of acting recklessly, and this can erode the confidence of investors, especially foreigners, in our banks, " he added.

Ramakrishnan said the Malacca's state government's impending action against the two banks could be followed by counter-action by opposition supporters to likewise withdraw their deposits from other banks to divert to these two banks as an expression of support.

He warned that this would cause unnecessary turmoil to the banking system and destabilise the country's economy.

Ramakrishnan expressed concern that Umno leaders had been raising or creating issues, including the Astro programming, and the housing sale and purchase agreement requirement to be written in Bahasa Malaysia, with an eye on the upcoming Umno party election.

"Mohd Ali is going for a seat in the Umno supreme Council and his government's threat to act against the two banks by taking out fixed deposits amounting to RM40 million smacks of opportunistic politicking at the expense of the nation's economy.

"If these claims by the CM are not backed up by evidence, followed by disciplinary action against the bank employees involved, Mohd Ali has compromised the country's banking system by making a mountain out of a molehill," Ramakrishnan said.

It was all too easy to make wild claims against opposition supporters that their "irresponsible acts" were a betrayal of trust but he cautioned against politicians who ride on populist bandwagons that use "the politics of fear" to advance their self interest.

Earlier, Mohd Ali had also disclosed that legal firms, panel doctors and other professionals who supported the opposition have had their services terminated by the state government.

He had also urged federal agencies to take similar action, to which Prime Minister Mahathir Mohamad later had stated that the government would give due consideration.

Attempts by malaysiakini to get comments from National Union of Bank Employees officials were unsuccessful.