12 January 2010 - Further to the statement issued by Alliance Bank Malaysia Berhad on 5 January 2010, the Board of Directors wish to provide further clarifications with regards to the matter at hand. The Board categorically states the following:

• The internally-driven investigation, which includes assistance from an independent external auditor, is a policy prescribed procedure that is both a part and result of, the Bank's strong corporate governance and due diligence processes.
• We have asked the CEO to answer certain questions and are now waiting for her replies.
• While the investigations are being carried out, the Bank is bound by legal and regulatory constraints and has to ensure that legitimacy of responses takes precedence over disclosure and timeliness. This is important so as not to impair reputation or set any bias or prejudice, while investigations are still being carried out.
• The matter under investigation:
  • does not involve the bank's core business or client transactions,
  • does not affect the bank balance sheet or profitability,
  • does not require provisions or impairments to be made,
  • does not relate to any police/MACC investigations,
  • concerns operational matters and is historical in nature
• As the matter under investigation involves the CEO either directly or indirectly, the CEO has voluntarily taken leave during this period to facilitate the objectivity of the investigation.
• Fundamentally, the bank remains sound from a business and operations perspectives, as affirmed by ratings agencies (RAM/Fitch).
• As part of our prudent risk management practice, the Bank ensures that there is a strong management and decision-making structure in place at all times, including a succession plan in place for all key management positions.
• At this point in time, it is not feasible and is too premature to comment on the details of our succession plan. This is to avoid impairing the objectivity of the investigation, and to protect the Bank's succession and talent strategy.
• Datuk Bridget Lai is currently on voluntary leave, and is effectively still the Group Chief Executive Officer (GCEO) of the Bank. In the interim, Mr. Choo Joon Keong is the appointed Relief Officer in charge.
• There is currently direct and active oversight from key members of the Alliance Bank's Board of Directors. Hence, even in the absence of the GCEO, there are no structural gaps in the Bank's business or operations and it is business-as-usual for our customers and employees.
• All major stakeholders have been engaged and informed, and are continuously kept up-to-date with developments.
• The indicative timeframe to complete the investigation is approximately 2-3 weeks; variance in which will be subject to review and approval by regulators and legal advisors.
• Rest assured, we will keep all interested parties, including the media, informed of all developments on this matter.

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