Minister Hasan Malek did not deny that Bank Rakyat gave a RM32 million soft loan to a carpet trader but said today that it was carried out in accordance with procedure.

The minister of domestic trade, cooperatives and consumerism was quoted by FZ.com as saying  that he was ready to be investigated  by the Malaysian Anti-Corruption Commission (MACC) as there was no wrongdoing.

Hasan was refuting allegations by former Bank Rakyat chairperson Sabbaruddin Chik that the minister had forced the bank to approve a RM32 million interest free loan to be paid back over 10 years .

"We acted in accordance with existing policies, laws and regulations,” he  was reported telling reporters after the ministry’s monthly gathering in Putrajaya yesterday.

Sabbaruddin Chik ( right ) had told The Malaysian Insider earlier this week that the bank’s board members initially rejected the deal, but later agreed after a request from Hasan.

According to the report, Sabbaruddin’s contract was not extended once it ended this April  year.

PAS information chief Mahfuz Omar yesterday had called on the MACC and Bank Negara to probe  if the bank largely owned by cooperative members, has been compromised by political interest.

The carpet trader who allegedly received the favourable loan has close ties with Putrajaya.

Harakah Daily also reported Hasan’s response.