Former CEO sues Bank Rakyat and foundation, claims over RM36m

Summary

• Former Yayasan Bank Rakyat CEO Syaiful Rizal Abdul Ghani and four senior ex-officers sue Bank Rakyat and the foundation for over RM36 million, claiming unlawful and sudden dismissal.

• The plaintiffs allege a lack of due process and accuse the bank of conspiring to damage their reputations, seeking various damages, including salaries, bonuses, and allowances.

• Syaiful also files a police report alleging a malicious and misleading audit report, while both Bank Rakyat and the foundation decline to comment publicly on the case.

The dismissal of Syaiful Rizal Abdul Ghani as chief executive officer (CEO) of Yayasan Bank Rakyat (YBR) two months ago did not end there.

The case has since been brought to court with a claim of over RM36 million for damages.

In a suit filed at the Kuala Lumpur High Court on June 5, Syaiful (above, right) and four other plaintiffs claimed that they were dismissed suddenly without valid reasons and without complying with the management code of conduct.

“The source of authority for my appointment was from YBR’s board of trustees, but my service was terminated by the newly established executive committee.

“However, according to the law, that committee does not have the power to take over the role of YBR’s board of trustees,” he told a press conference in Kuala Lumpur on Monday.

Besides Syaiful, the other plaintiffs are operations division head Mukhti Abd Rahman, secretariat head Ghazali Zainal Abidin, corporate administration head Khairul Na’im Aripan @ Arifin, and human resources and administration department manager Johary Abdul Jalil.

All of them were senior officers under Syaiful.

“The action taken not only affects professional reputations but also tarnishes the integrity of the institution if it can be proven that Bank Rakyat had a motive to conspire in the dismissal,” he said.

According to the writ of summons sighted by Malaysiakini, the plaintiffs also allege the existence of a tortious conspiracy to injure them.

However, that allegation was not elaborated on.

Declaration and claims

They are seeking the court to declare the termination of their contracts invalid, in addition to various damages.

Syaiful, as the first plaintiff, is claiming over RM4 million from YBR and Bank Rakyat, including nearly three years’ salary amounting to RM1.3 million, medical allowance of RM1.44 million, and a three-year bonus totalling nearly RM1 million.

Mukhti is making the largest claim of over RM15 million, including salary until retirement worth RM9.4 million, annual bonus (RM5 million), and unused annual leave (RM895,000).

The third plaintiff is seeking RM3 million in damages, including a 10-year annual bonus (RM1.5 million), monthly allowance (RM285,000), and unused leave (RM248,000).

Khairul is claiming more than RM9 million. The claim includes salary until retirement over 22 years worth RM6.7 million, bonus (RM1.9 million), and unused leave (RM638,000).

Johary is claiming more than RM3 million, including a salary of RM2 million, a performance bonus (RM983,000), and a monthly allowance (RM206,000).

Law firm Amelda and Partners filed the lawsuit.

READ MORE: Bank Rakyat denies wrongful dismissal claim by ex-foundation CEO

Police report lodged

On April 18, Syaiful lodged a police report alleging that the final audit report he received was malicious and misleading.

“It is very concerning if the audit department of a bank can be used as an instrument to victimise any party,” he alleged.

Syaiful claimed that the report was inconsistent with his exit meeting on March 24, during which all audit issues were answered without objection.

Malaysiakini has reached out to Bank Rakyat, YBR and its CEO Noor Aeiza Hassan for comments.

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