The delay in Bank Negara approving the re-appointment of Sarawak Chief Minister Abdul Taib Mahmud's son Sulaiman as director and executive chairperson of RHB Bank has raised questions about the family's future stake in banking and his future role in politics.

Sulaiman's two-year term as director/executive chairperson of one of Malaysia's 10 anchor banks expired on June 21 and RHB Bank has written to the central bank recommending his re-appointment.

Sources in the banking industry told malaysiakini that in normal circumstances, Bank Negara will give immediate approvals for such re-appointments.

However, the scenario is different with RHB, thus raising many eyebrows.

Sulaiman, 37, is a major but not controlling shareholder of RHB Group.

He is said to have a 22.58 percent stake in Cahaya Mata Sarawak Berhad (CMSB) which has a 51.83 percent stake in Utama Banking Group Bhd which in turns hold 32.87 percent in RHB.

Takeover talks?

There is a talk that RHB may be subject to a takeover in the second wave of consolidation in the country's banking industry, with the number of anchor banks likely to be reduced to five.

The speculation, which RHB Capital has denied, is that Commerce International Merchant Bankers (CIMB), the 100 percent owner of Bumiputera Commerce Bank Bhd, will absorb RHB.

Sources said after buying into RHB Bank, the Taib family had tried in vain to change the name of the bank to CMB Bank. Its recommendation for a chief executive officer had also been turned down by Bank Negara.

"Effectively the Taib family, directly or indirectly, has a 20 percent stake in RHB Bank with the rest held by federal government agencies or government-linked companies," added the sources.

Interestingly, on July 29, Bank Negara approved the appointment of one of RHB Bank's major shareholders - the Employees Provident Fund (EPF) - chief executive officer Azlan Zainol as a director of RHB Capital amid talks that EPF is exerting greater control over the bank.

"Assuming that Bank Neagra eventually gives its approval to Sulaiman, he will just be the chairperson of the board while the CEO will run the banking group," said the sources.

There is also talk that the Taib family is trying to cash out and recoup their investment in the bank.

Father's plans

For Sulaiman, this will probably fit into his father's plans of ushering him into politics. The grapevines have it that he is being groomed to take over as Lambir state assemblyperson from incumbent Aidan Wing.

Wing may either move to the new state seat of Bekenu or be told to focus on his job as managing director of Hornbill Skyways, the state-owned aviation company.

Sources within Parti Pesaka Bumiputera Bersatu (PBB), the party led by Taib, said the chief minister's son will probably be appointed as party treasurer next month.

The post is presently held by state second resource management and planning minister Awang Tengah Ali Hasan.

Sulaiman, who is also the group chairperson of the family-controlled CMSB Group of Companies, could not be contacted for comments.

TONY THIEN is malaysiakini 's Sarawak-based stringer.