BANK PERTANIAN MALAYSIA ACT 1969

BANK PERTANIAN MALAYSIA ACT 1969
(Act 9)

ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title
2. Application
3. Interpretation
PART II
ESTABLISHMENT, CAPITAL AND ADMINISTRATION OF THE BANK
4. Establishment of the Bank
5. Office of the Bank
6. Objects
7. Capital
8. Board of Directors
9. Terms of appointment of Chairman and directors
10. Appointment and duties of General Manager
10a. Appointment of committees and sub-committees
10b. Discipline of officers and employees
10c. Surcharge
10d. Establishment of Disciplinary Appeal Board
10e. Termination in the public interest
11. Direction by the Minister
PART III
MEETINGS OF THE BOARD
12. Meetings of the Board
13. Disclosure of director’s interest in contract
PART IV
POWERS, FUNCTIONS AND THE BUSINESS OF THE BANK
14. Power to borrow
15. Authorized business of the Bank
16. Business which the Bank may not transact
17. Loans and lending
18. Bank may sell or dispose of crops and produce
19. Examination of application of loan moneys, and credit
20. Sums improperly applied
21. Cancellation or modification of approval of guarantee
22. Refusal to give sums not yet advanced
PART V
GENERAL RESERVE FUND OF THE BANK
23. Maintenance of General Reserve Fund
24. Exhibition of audited balance sheet
PART VI
ACCOUNTS AND AUDIT
25. Audit
26. Preparation and publication of annual report and balance sheet
PART VII
OFFICERS AND EMPLOYEES OF THE BANK
27. Officers and employees
28. Borrowing from Bank by staff
29. Restrictions on payments of loans and advances to staff
30. Provident fund
31. Officers on secondment or transfer from Federal or State service
PART VIII
PENALTIES AND PROSECUTION
32. Penalties
33. Fiatof Public Prosecutor
34. Jurisdiction
PART IX
GENERAL
35. Penal Code
36. Preservation of secrecy
37. Power to appoint attorney
38. Power to make regulations
38a. Power to make disciplinary regulations
An Act to incorporate the Bank Pertanian Malaysia to organize, provide, supervise and
co-ordinate the grant of credit for agricultural purposes in Malaysia.

BE IT ENACTED by the Duli Yang Maha Mulia Seri Paduka Baginda Yang di-Pertuan Agong
with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled,
and by the authority of the same, as follows:
PART I
PRELIMINARY
1. Short title
This Act may be cited as the Bank Pertanian Malaysia Act 1969.
2. Application
This Act shall apply throughout Malaysia.
3. Interpretation
In this Act unless the context otherwise requires:
“agriculture” includes any activity in agriculture, horticultural or forestry production,
fisheries, and the use of land for any purpose of husbandry;
“agricultural production” means any agricultural or horticultural produce, processed or
otherwise, including farm and farmyard animals whether alive or slaughtered, the flesh or hide of
such animals, dairy produce, poultry and eggs, fish and fishery products;
“Bank” means Bank Pertanian Malaysia;
“Board” means the Board of Directors of Bank Pertanian Malaysia;
“Chairman” means the Chairman of Bank Pertanian Malaysia;
“director” means a director appointed under section 8 and includes the Chairman;
“General Manager” means the General Manager of Bank Pertanian Malaysia;
“giro service” means a service for the transfer of payment between accounts on the instruction
of depositor or depositors;
“husbandry” includes the keeping or breeding of livestock, poultry or bees and the growing of
fruit, vegetables and the like;
“marketing” means the sale, export, processing, purchase, storage, collection, assembling and
the transport for purposes of purchase and sale of any agricultural produce and includes
advertising and financing of operations for such agricultural produce for the purpose of trade;
“Minister” means the Minister charged with the responsibility of Bank Pertanian Malaysia.
PART II
ESTABLISHMENT, CAPITAL AND ADMINISTRATION OF THE BANK
4. Establishment of the Bank
There is hereby established a body corporate by the name of “Bank Pertanian Malaysia” with
perpetual succession and a common seal, and power to acquire and hold movable or immovable
property and to dispose thereof or otherwise deal therewith such property, and which may sue
and be sued in its own name.
5. Office of the Bank
The Bank shall have its head office in Kuala Lumpur, and may open branches and appoint agents
and correspondents within Malaysia.
6. Objects
The objects of the Bank shall be—
(a) to promote sound agricultural development in Malaysia or any part thereof;
(b) to co-ordinate and supervise the grant of credit from public funds for agricultural
purposes by the various persons or bodies of persons whether incorporate or
unincorporate;
(c) to provide loans, advances and other credit facilities for the development of
agriculture including production and marketing;
(d) to mobilize savings with particular regard to the agricultural sector and in
furtherance of this object to accept savings and time deposits.
7. Capital
(1) The authorized capital of the Bank shall be fifty million ringgit of which ten million

ringgit shall be subscribed and paid up by the Government on the establishment of the Bank.
(2) The paid up portion of the authorized capital may be increased by such amount and in
such a manner as the Board shall decide from time to time with the approval of the Minister and
the concurrence of the Minister of Finance:
Provided that the payment of such increase in capital may be made by way of such transfers as
the Board may with the approval of the Minister and the concurrence of the Minister of Finance,
from time to time decide, including transfers from the General Reserve Fund of the Bank and
other sources as the Minister on the recommendation of the Board may approve.
8. Board of Directors
(1) There shall be a Board of Directors constituted under subsection (2) which shall be
responsible for carrying out the functions of the Bank and the general administration of the
affairs and business of the Bank.
(2) The Board of Directors shall consist of a Chairman appointed by the Yang di-Pertuan
Agong and not less than six and not more than eight directors to be appointed by the Minister:
Provided that at least three of the directors appointed by the Minister shall be persons not
holding any public office.
(3) The directors appointed under subsection (2) shall be persons of standing, experience
and capacity in matters relating to agriculture and finance, but as directors of the Bank shall not
act as delegates on the Board from any agricultural, commercial, financial, industrial or other
interests with which they may be connected.
(4) Where a director appointed is a public officer—
(a) the prohibition mentioned in subsection (3) shall not apply; and
(b) there shall be appointed an alternate director in addition thereto.
9. Terms of appointment of Chairman and directors
(1) The Chairman shall be appointed for a term not exceeding five years and shall be
eligible for reappointment.
(2) Subject to subsection (1), a director shall hold office for a term not exceeding three
years and shall be eligible for reappointment.
(3) The Chairman and the directors shall be paid by the Bank such remuneration and
allowances as may be determined by the Minister.
(4) During the temporary incapacity from illness or during the temporary absence from
Malaysia of the Chairman or any director, the Yang di-Pertuan Agong or the Minister, as the
case may be, (by whom that person was appointed pursuant to subsection 8(2)) may appoint
another person to be a temporary Chairman or director, as the case may be.
(5) The Yang di-Pertuan Agong or the Minister, as the case may be, may terminate the
appointment of the Chairman or any director if he—
(a) is guilty of serious misconduct in relation to his office;
(b) is absent, except on leave, from all meetings of the Board held during two
consecutive months or during any three months in any period of twelve months;
(c) fails to comply with his obligations under section 13(1).
(6) No person shall be appointed or shall remain as Chairman or director of the Bank if—
(a) he becomes of unsound mind or otherwise incapable of carrying out his duties;
(b) he becomes bankrupt or suspends payment or compounds with his creditors;
(c) he is convicted by a court of law in Malaysia of an offence and sentenced to
imprisonment for a term of not less than two years, or of any offence involving
fraud or dishonesty and has not received a free pardon;
(d) he is a director or salaried official of any bank licensed under the provisions of
the Banking and Financial Institutions Act 1989 [Act 372].
10. Appointment and duties of General Manager
(1) The Board shall appoint a General Manager who shall be responsible for the day to day
administration and management of the affairs of the Bank and may, subject as is expressly stated
in this Act, give decisions and exercise all powers and do all acts which may be exercised or
done by the Bank.
(2) The General Manager shall be answerable to the Board for his acts and decisions.
(3) The General Manager shall devote the whole of his professional time to the service of
the Bank:
Provided that he may if so appointed with the approval of the Minister—
(a) act as a member of any committee or commission appointed by Government to
enquire into any matter affecting agriculture and agricultural production, finance
and credit and related matters in Malaysia;
(b) become a director, governor or member of the board by whatsoever name called
of any international bank or agricultural institution of international character;
(c) become a director of any corporation in Malaysia in which the Bank may
participate; or
(d) become a director or member of the board of management by whatsoever name
called of any statutory authority.
10a. Appointment of committees and sub-committees
(1) The Board may appoint committees for any purpose arising out of or connected with
any of its powers, duties and functions under this Act; any committee so appointed shall include
not less than one member of the Board, and there may be appointed to such committee such
other persons as the Board may think fit.
(2) Any committee appointed under subsection (1) may appoint one or more
sub-committees; any sub-committee so appointed shall include not less than one member of the
committee appointing it, and there may be appointed to such sub-committee such other persons
as the committee appointing it may think fit.
(3) Any committee or sub-committee so appointed shall conform to any instructions from
time to time given to it by the Board, and the Board may at any time discontinue or alter the
constitution of any committee or sub-committee so appointed.
(4) There may be paid to members of any committee or sub-committee such remuneration
or allowances as the Board may from time to time determine with the approval of the Minister.
(5) The Board, a committee or sub-committee may, respectively, invite any person who, in
its opinion, is possessed of special knowledge of advantage to it, to attend any meeting of the
Board, committee or sub-committee and the person so invited shall not be entitled to vote at any
such meeting.
(6) Any minutes of any meeting of any committee or sub-committee shall, if duly signed,
be receivable in evidence in all legal proceedings without further proof and every such meeting
shall be deemed to have been duly convened and held and all members of the committee or
sub-committee present at such meeting shall be deemed to have been duly qualified to act.
10b. Discipline of officers and employees
(1) There shall be a Disciplinary Committee of the Bank which shall consist of two
members to be elected by and from the members of the Board, one of whom shall be elected
chairman, and the General Manager appointed under section 10(1).
(2) The disciplinary authority in respect of every officer and employee of the Bank other
than the General Manager shall be the Disciplinary Committee of the Bank established under
subsection (1).
(3) The disciplinary authority in respect of the General Manager shall be the disciplinary
committee which shall consist of the Secretary General of the Ministry of Agriculture as
chairman and two members to be elected by and from the members of the Board.
(4) The General Manager shall not be a member of the Disciplinary Committee in any
proceedings before it in which he is the complainant; his place shall be taken by a member to be
elected by and from the members of the Board.
(5) In the exercise of its disciplinary functions, the Disciplinary Committee shall have the
power to impose such disciplinary punishment as may be provided for under any regulations that
may be made under section 38a.
(6) The Disciplinary Committee may, subject to subsection (7), delegate any of its
disciplinary functions, powers or duties to any committee of officers or employees of the Bank,
in respect of any particular officer or employee of the Bank or in respect of any class or category
of officers or employees of the Bank, and the committee delegated with such functions, powers
or duties shall carry out, exercise or discharge them under the direction and control of the
Disciplinary Committee which shall have the power to review, rescind or vary any decision or
finding of such committee.
(7) No delegation shall be made under subsection (6) so as to enable an officer or employee
of the Bank to be a member of a committee which may exercise any disciplinary authority over
an officer or employee who is superior to him in rank.
(8) A decision of the Disciplinary Committee established under subsection (1) shall be
appealable to the Disciplinary Appeal Board established under section 10d.
(9) A decision of the Disciplinary Committee established under subsection (3) shall be
appealable to the Minister.
(10) The Disciplinary Appeal Board or the Minister, as the case may be, may confirm,
reverse or vary the decision of the Disciplinary Committee.
(11) A decision of the Disciplinary Appeal Board or the Minister under (10) shall be final
and conclusive.
Am. Act A1048
10c. Surcharge
(1) If it appears to the Disciplinary Committee that any person who is or was in the
employment of the Bank—
(a) has failed to collect any moneys owing to the Bank for the collection of which he
is responsible;
(b) is or was responsible for any payment of Bank moneys which ought not to have
been made or for any payment of moneys which is not duly vouched;
(c) is or was responsible, directly or indirectly, for any deficiency in, or for the
destruction of, any moneys, stamps, securities, stores or other property of the
Bank;
(d) being or having been an accounting officer, fails or has failed to keep proper
accounts or records;
(e) has failed to make any payment, or is or was responsible for any delay in the
payment, of Bank moneys to any person to whom such payment is due under any
contract, agreement or arrangement entered into between that person and the
Bank,
the Disciplinary Committee shall serve on him a written notice calling on him to show cause
why he should not be surcharged, and if a satisfactory explanation is not, within fourteen days
from the date of service of the notice as aforesaid, furnished to the Disciplinary Committee with
regard to the failure to collect, payment which ought not to have been made, payment not duly
vouched, deficiency or destruction, or failure to keep proper accounts or records, or failure to
make payment, or delay in making payment, the Disciplinary Committee may surcharge against
the said person a sum not exceeding the amount of any such amount not collected, such payment,
deficiency, or loss or the value of the property destroyed, as the case may be; and with regard to
the failure to keep proper accounts or records, or the failure to make payment, or the delay in
making payment, the Disciplinary Committee may surcharge against the said person such sum as
the Committee may think fit.
(2) The chairman shall cause the General Manager to be notified of any surcharge made
under subsection (1) and the General Manager shall thereupon notify the person surcharged.
(3) The Disciplinary Committee may at any time withdraw any surcharge in respect of
which a satisfactory explanation has been received or if it otherwise appears that no surcharge
should have been made, and the chairman shall at once cause the General Manager to be notified
of such withdrawal.
(4) The amount of any surcharge made under subsection (1) and not withdrawn under
subsection (3) shall be a debt due to the Bank from the person against whom the surcharge is
made and may be sued for and recovered in any court at the suit of the Bank and may also be
recovered by deduction—
(a) from the salary of the person surcharged if the Disciplinary Committee so directs;
or
(b) from the pension of the person surcharged if the Disciplinary Committee so
directs,
by equal monthly instalments not exceeding one-fourth of the total monthly salary or pension, as
the case may be, of the person.
10d. Establishment of Disciplinary Appeal Board
(1) There shall be a Disciplinary Appeal Board of the Bank which shall consist of the
following members:
(a) the Chairman, who shall be the chairman of the Disciplinary Appeal Board and
shall have a casting vote; and
(b) three members of the Board, not being members of the Disciplinary Committee
whose decision is the subject matter of the appeal, to be appointed by the
chairman of the Disciplinary Appeal Board with the approval of the Board for the
purpose of the appeal.
(2) When the Disciplinary Appeal Board considers an appeal made under section 10b, a
member of the Disciplinary Committee against whose decision the appeal is made who is also a
member of the Board shall not present or in any way participate in any proceedings relating to
the appeal.
10e. Termination in the public interest
(1) Where the Board finds or where representations are made to the Board that it is
desirable that the service of an officer or employee be terminated in the public interest, the Board
may call for a full report from the superior officer of the officer or employee against whom the
representations are made which shall contain particulars relating to the work and conduct of the
officer or employee.
(2) If, after considering the report received under subsection (1), the Board is satisfied that,
having regard to the conditions of service, the usefulness of the officer or employee, the work
and conduct of the officer or employee and all other circumstances of the case, it is desirable in
the public interest so to do, the Board may terminate the service of the officer or employee with
effect from such date as the Board shall specify.
(3) It shall be lawful for the appropriate Disciplinary Committee to recommend to the
Board that the service of an officer or employee be terminated in the public interest
notwithstanding that disciplinary proceedings have not been carried out under this Act and the
Board may so terminate the service of the officer or employee.
(4) Notwithstanding anything in this Act and any other law to the contrary, in terminating
the service of an officer or employee in the public interest under this section, the officer or
employee may not be given any opportunity of being heard and an officer or employee whose
service has been terminated in the public interest under this section shall not be regarded as
having dismissed, regardless of whether the termination of service of the officer or employee
involved an element of punishment or was connected with conduct in relation to his office which
the Board regards as unsatisfactory or blameworthy.
11. Direction by the Minister
The Minister may issue directives not inconsistent with the provisions of this Act to the Board
regarding the policy to be pursued by the Bank and any such directive shall become binding on
the Board which shall forthwith take all steps necessary or expedient to give effect thereto.
PART III
MEETINGS OF THE BOARD
12. Meetings of the Board
(1) At every meeting of the Board the Chairman, or in the absence of the Chairman, a
director elected by the directors present at the meeting, shall preside.
(2) The Chairman shall summon Board meetings as often as required but not less frequently
than once a month.
(3) Three directors may requisition a meeting of the Board.
(4) Four members of the Board present at a meeting of the Board shall form a quorum.
(5) All decisions at a meeting of the Board shall be adopted by a simple majority of votes
of directors present and voting:
Provided that if upon any question the votes are equally divided, the Chairman or the person
presiding shall have a casting vote.
13. Disclosure of director’s interest in contract
(1) A director who is directly or indirectly interested in a contract made, or proposed to be
made, by the Bank shall disclose the nature of his interest at the first meeting of the Board at
which he is present after the relevant facts have come to his knowledge.
(2) A disclosure under subsection (1) shall be recorded in the minutes of the Board and,
after disclosure, the director—
(a) shall not take part in any deliberation or decision of the Board with respect to that
contract; and
(b) shall be discharged for the purpose of constituting a quorum of the Board for any
such deliberation or decision.
(3) No act or proceeding of the Board shall be questioned on the ground of the
contravention by a member of the Board of the provisions of this section.
PART IV
POWERS, FUNCTIONS AND THE BUSINESS OF THE BANK
14. Power to borrow
For the purpose of carrying out its functions under this Act the Bank may, with the prior written
approval of the Minister of Finance, borrow from any Federal or State monetary, co-operative,
development, marketing or like institution, board, authority or other organization or international
bank or agricultural credit institution of an international character such sums as may be required
by the Bank and on such terms and subject to such conditions as may be agreed between the
Bank and the lender and approved by the Minister of Finance.
15. Authorized business of the Bank
Notwithstanding any written law relating to borrowing business the Bank may—
(a) borrow, raise or take up money, lend or advance money with or without security;
purchase, sell, discount and rediscount inland bills of exchange and promissory
notes bearing two or more good signatures drawn or issued for the purpose of
financing agricultural operations or the marketing of crops;
(b) in respect of agricultural operations and marketing of agricultural productions,
grant and issue letters of credit;
(c) acquire, hold, issue on commission, underwrite and deal with stock bonds, funds,
obligations, securities and investment of all kinds;
(d) receive money and valuables on deposit for safe custody;
(e) transact all manner of agency business;
(f) acquire and undertake the whole or any part of the business, property and
liabilities of any person or company carrying on any business which the Bank is
authorized to carry on, or possessed of property suitable for the purposes of the
Bank;
(g) issue on commission, subscribe for, take, acquire and hold, sell, exchange, and
deal in shares, stocks, bonds, obligations or securities of the Federal or any State
Government or such other public institution as the Minister on the
recommendation of the Board may approve;
(h) carry on the business of godown keepers or warehousemen and to hire, purchase,
erect or otherwise acquire warehouses or godowns for any of the purposes of the
Bank;
(i) acquire, improve, manage, work, develop, exercise all rights in respect of, lease,
mortgage, sell, dispose of, turn to account, and otherwise deal with property,
movable and immovable irrespective of the title thereof, and produce of all kinds
and in particular agricultural produce;
(j) enter into any arrangements with the Federal or any State Government or
authorities, municipal, local or otherwise that may seem conducive to any or all of
the objects of the Bank, and to obtain from any such Government or authority any
rights, privileges and concessions which the Bank may think it desirable to obtain
and to carry out, exercise, and comply with any such arrangements, rights,
privileges and concessions;
(k) accept savings and time deposits;
(l) make advances for the purpose of assisting the growing or marketing or
development of primary produce to individuals, co-operatives, authorities and
such other organizations as approved by the Board being organizations engaged
in farming, agricultural, horticultural, husbandry, pastoral, grazing, or fishing
operations;
(m) purchase, sell, and discount Treasury bills of the Government or of the
Government of any State authorized to issue Treasury bills;
(n) with the approval of the Minister, acquire, hold and sell shares of any corporation
set up with the approval of or under the authority of the Government or of the
Government of any State, for the purpose of promoting the development of
agriculture in Malaysia or any part thereof;
(o) maintain accounts with other banks within Malaysia;
(p) act as correspondent, or agent for any international bank or agricultural credit
institution of an international character;
(q) operate giro services;
(r) do generally all such things as may be necessary for the purpose of carrying out
the functions of the Bank.
16. Business which the Bank may not transact
(1) The Bank may not—
(a) except as provided in section 15(n) purchase the shares of any corporation,
including the shares of any banking company or subsidiary company thereto;
(b) accept for discount or as security for an advance made by the Bank, bills or notes
signed by members of the Board or by the Bank’s officers or employees except in
relation to any loan made by the Bank under section 28.
(2) Nothing in this Act shall authorize the Bank to—
(a) accept any money on deposit or loan which is repayable on demand by cheque,
draft, order or any other instrument drawn by the depositor on the Bank;
(b) deal in—
(i) gold; or
(ii) foreign currency.
17. Loans and lending
In the exercise of its powers and functions the Bank may make loans and advances on such terms
and conditions and for such purpose or purposes as the Bank may impose.
18. Bank may sell or dispose of crops and produce
(1) When any loan or advance has been granted for the cultivation of crops on any land the
expenses of reaping and rendering merchantable such crops shall be borne by the person to
whom the loan or advance is made, and all such crops and produce reaped or gathered from the
land shall until such loan or advance has been repaid, be sold, disposed of, or otherwise dealt
with as the Bank may so direct and, until so sold or disposed of shall be held by the person
obtaining the loan in trust for the Bank:
Provided that the power of the Bank to sell, to dispose of, or to deal with such crops and produce
as prescribed in this subsection shall only be exercised by the Bank—
(i) where the person to whom the loan or advance was made fails without reasonable
cause to comply with any of the provisions of this Act or commits a breach of any
of the terms or conditions under which the loan or advance was granted; or
(ii) where the sale, disposal or dealing of the crops and produce is in relation to the
repayment of the loan or advance.
(2) The Bank may enter into written agreement with any person dealing in or processing
any kind of agricultural produce for the disposal or sale of such produce where loans or advances
have been made under the provisions of this Act to the owner of such produce. The agreement
shall provide for the sale without undue delay of such produce and the immediate payment to the
Bank of the proceeds of such sale or such part thereof as the Bank shall require and not
exceeding the sum advanced or loaned together with interest and reasonable charges thereupon;
and the proceeds of the disposal or sale less the sum or sums due rightfully to the Bank as
aforesaid shall be credited to the account of the owner to whom the loan or advance has been
made.
19. Examination of application of loan moneys, and credit
(1) Where the Bank has made a loan or advance credit or has guaranteed any loan of money
under the provisions of this Act, the Bank shall—
(a) provide such supervision as may be necessary to ensure that the loan or advance
is effectively utilized for the purpose or purposes for which it was made; and
(b) require financial statements to be submitted by the person, body or authority in
receipt of the loan or advance in such detail and at such intervals of time as the
Bank may specify and this requirement shall be complied with by the recipient.
(2) The Bank may authorize in writing any of its officers or any other person to make such
examination, as the Bank may direct and the person, body or authority in receipt of the loan or
advance shall produce to such officer or such other person all such books, documents and other
things and matters as may be necessary for the purpose of the examination.
20. Sums improperly applied
If any sum whether constituting the whole loan, advance or guarantee or any part thereof appears
to the Bank not to have been applied for the purpose or purposes for which it was granted or
made, the Bank may require the person, body or authority to whom the loan or advance was
made, within such time as may be specified in the requirement, to—
(a) apply the sum for the said purpose or purposes; or
(b) repay the sum together with the interest, if any, due thereon and other reasonable
charges, if any, to the Bank.
21. Cancellation or modification of approval of guarantee
The Bank may, at its discretion and without assigning any reason therefor at any time after the
approval of a loan or advance or guarantee and before the actual repayment of the money or
completion of the guarantee, cancel or modify such approval and withhold payment of the whole
or any part of the money or refuse to enter into such a guarantee.
22. Refusal to give sums not yet advanced
In any case where the Bank has approved the making or grant of a loan by instalments, or has
guaranteed such a loan, and any part of such loan has not been advanced, then without prejudice
to any remedy, the Bank may refuse to advance the said part not yet advanced if—
(a) any sum of money whether principal or interest due in respect of any loan or
advance made under this Act remains unpaid;
(b) in the opinion of the Bank, any prior loan made under this Act has not been
applied for the purpose or purposes for which it was made or granted or has not
been expended with due care and economy;
(c) the borrower has become insolvent or has been sentenced to a term of
imprisonment without the option of the payment of a fine or convicted of any
offence involving fraud or dishonesty or has assigned his estate for benefit of
creditors;
(d) there has been a breach or non-observance of any condition attached to the loan or
advance; or
(e) in the opinion of the Bank, the sum already advanced or loaned was not applied to
the purpose or purposes for which it was granted or made within a reasonable
time.
PART V
GENERAL RESERVE FUND OF THE BANK
23. Maintenance of General Reserve Fund
At the end of each financial year the net profit of the Bank for that year shall be determined after
allowing for the expenses of operation and after provision has been made for bad and doubtful
debts, depreciation in assets, contributions to staff and pension funds and such other
contingencies. The net profit for the year shall be placed to the credit of the General Reserve
Fund of the Bank.
24. Exhibition of audited balance sheet
The Bank shall exhibit throughout the year in a conspicuous position in every office and branch
of the Bank a copy of its last audited balance sheet, as soon as it is available, together with the
full and correct names of the directors of the Bank, and shall publish its last audited balance
sheet in at least one local daily newspaper in the national language and at least one local daily
English newspaper; and within six months after the close of its financial year forward to the
Minister a copy of its last audited balance sheet and profits and loss account.
PART VI
ACCOUNTS AND AUDIT
25. Audit
The accounts of the Bank shall be audited by the Auditor General or any other auditor appointed
by the Board with the approval of the Minister of Finance.
26. Preparation and publication of annual report and balance sheet
(1) The Bank shall within three months from the close of its financial year transmit to the
Minister a copy of the Annual Report of the Bank on the working of the Bank throughout the
year and such report shall be published by the Bank.
(2) The Minister shall cause a copy of every such report to be laid before each House of
Parliament.
PART VII
OFFICERS AND EMPLOYEES OF THE BANK
27. Officers and employees
(1) The Bank may appoint such officers and employees as it may consider necessary for the
efficient conduct of the business of the Bank.
(2) Officers and employees of the Bank shall hold office for such period or periods, receive
such salaries and allowances and be subject to such other terms and conditions of service as may
be determined by the Board with the approval of the Minister and subject to the concurrence of
28. Borrowing from Bank by staff
(1) Subject to subsections (2) and (3) the Bank shall not lend money to an officer or
employee.
(2) The Bank may lend money to an officer or employee—
(a) for the purchase, erection, alteration, renovation or enlargement of a house in
which he resides or intends to reside, under rules approved by the Board;
(b) to discharge a mortgage or encumbrance on such a house; or
(c) for the purchase of a vehicle.
(3) Where the Board is satisfied that special or compassionate circumstances exist or the
purpose is appropriate, it may approve a loan by the Bank to an officer or employee on such
terms and conditions as the Board thinks appropriate; and such loan shall not exceed at any one
time an amount equal to three months’ all-in-salary of the officer or employee.
29. Restrictions on payments of loans and advances to staff
The Bank shall not grant an advance, loan or credit facility of an unsecured nature to any
director, any firm in which any of its directors is interested as partner, manager or agent or
director, any individual or firm of whom or of which any of the Bank’s directors is a guarantor,
or any of the Bank’s officers or employees save as provided in this Act.
30. Provident fund
The Board may with the approval of the Minister and subject to the concurrence of the Minister
of Finance, make rules for the establishment and management of a contributory provident fund
for the officers and employees appointed under section 27(1) or for the payment of pensions
allowances or gratuities to the said officers and employees on retirement or otherwise ceasing to
hold office as such officers and employees.
In this section, section 27(2), section 28 and section 29 the expression “officer” includes the
General Manager.
31. Officers on secondment or transfer from Federal or State service
The appointments of officers or employees of the Bank who have been seconded or transferred
to the service of the Bank from, or previously from, the service of the Federal or any State
Government or other public authority approved by the Board may, subject to the provisions of
any Federal or State law, be made in accordance with such arrangements as to pensions and
allowance for previous service as the Board may determine.
PART VIII
PENALTIES AND PROSECUTION
32. Penalties
Any person shall be guilty of an offence and shall on conviction be liable to a fine of two
thousand ringgit or to imprisonment for a term not exceeding one year or both such fine and
imprisonment, if he—
(a) obtains a loan or advance or guarantee from the Bank under or by means of any
wilful misrepresentation;
(b) wilfully applies any loan or advance made to him by the Bank to any purpose or
purposes other than those for which it was made; or
(c) having obtained the loan, advance or guarantee from the Bank wilfully destroys
any security given in relation to such loan, advance or guarantee.
33. Fiat of Public Prosecutor
No prosecution for any offence arising out of the provisions of this Act or in connection with any
loan made hereunder shall be instituted except with the consent in writing of the Public
Prosecutor.
34. Jurisdiction
Notwithstanding the provisions of any other written law a Sessions Court shall have jurisdiction
to try any offence against this Act and to impose the full penalty prescribed therefor.
PART IX
GENERAL
35. Penal Code
Any officer appointed under section 27(1) (as well as the General Manager and any director of
the Board) shall be deemed to be a public servant within the meaning of the Penal Code [Act
574].
36. Preservation of secrecy
Except for the purpose of the proper performance of his duties or the exercise of his functions or
when lawfully required to do so by any court or under any provisions of any law, no director,
General Manager, officer, or employee of the Bank shall disclose to any person any information
relating to the affairs of the Bank or of any customer of the Bank which he has acquired in the
performance of his duties or the exercise of his functions.
37. Power to appoint attorney
The Bank may by instrument under its seal appoint a person whether in Malaysia or any place
outside Malaysia, to be its attorney and such person so appointed may, subject to the instrument,
do any act or execute any power or function which he is authorized by the instrument to do or
execute.
38. Power to make regulations
The Board may, with the approval of the Minister, and in respect of paragraph (a) subject to the
concurrence of the Minister of Finance, make regulations for all or any of the following matters:
(a) the determination of salary scales and terms and conditions of employment of the
officers and employees of the Bank, including the provision of loans to such
officers and employees; and
(b) any other matter required by this Act to be prescribed and for the better carrying
out of this Act.
38a. Power to make disciplinary regulations
(1) The Board may, with the approval of the Minister, make such disciplinary regulations
as it deems necessary or expedient to provide for the discipline of the officers and employees of
the Bank.
(2) The disciplinary regulations made by the Board under this section may include
provisions for the interdiction with reduction in salary or in other remuneration, or provisions for
the suspension without salary or other remuneration, of an officer or employee of the Bank
during the pendency of disciplinary proceedings.
(3) The disciplinary regulations made under this section shall create such disciplinary
offences and provide for such disciplinary punishments as the Board may deem appropriate, and
the punishments so provided may extend to dismissal or reduction in rank.
(4) The disciplinary regulations made under this section shall, in prescribing the procedure
for disciplinary proceedings, provide for an opportunity for the person against whom disciplinary
proceedings are taken to make representations against the disciplinary charge laid against h before a decision is arrived at by the Disciplinary Committee except in the following cases:
(a) where an officer or employee of the Bank is dismissed or reduced in rank on the
ground of conduct in respect of which a criminal charge has been proved against
him;
(b) where the Board, on the recommendations of the Minister charged with the
responsibility for home affairs, is satisfied that in the interest of the security of
Malaysia or any part thereof it is not expedient to carry out the requirements of
this subsection; or
(c) where there has been made against an officer or employee of the bank any order
of detention, supervision, restricted residence, banishment or deportation, or
where there has been imposed on an officer or employee of the Bank any form of
restriction or supervision, by bond or otherwise, under any law relating to the
security of Malaysia or any part thereof, prevention of crime, preventive
detention, restricted residence, banishment, immigration, or protection of women
and girls.
(5) The disciplinary regulations made under this section shall provide for the procedure for
the hearing of an appeal against the decision of the Disciplinary Committee.
(6) For the purpose of this section, “officer” includes the General Manager.