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Bar Council cries foul over banks’ discriminatory ruling

Sunday, 06 May 2007 09:20am

Bar Council cries foul over banks’ discriminatory ruling • ACCCIM raps bank over bumiputra requirement

©New Sunday Times (Used by permission)
By : Anis Ibrahim and Heidi Foo

KUALA LUMPUR: A new regulation by two major banks that requires Bumiputera legal firms’ involvement has irked the legal community.

The regulation requires law firms to have a minimum of three partners of which one must be Bumiputera with a minimum 50 per cent stake in the firm before they can do any business with the banks.

The letter was sent to all legal firms last month.

The Bar Council has cried foul over the conditions set by the banks.

Council chairman Ambiga Sreenevasan described the requirement as "totally discriminatory".

"There is no legal basis for such a condition and it’s certainly in breach of the spirit of the Federal Constitution.

"All our lawyers should be judged on merit.

"That is the correct basis for selection," she told the New Straits Times.

"Most of all, we are concerned that such preferences will give rise to tokenism and that it will affect the quality of the legal services provided," she added.

The Bar Council, she said, imposed no such conditions on members of the Bar.

"We don’t stipulate how law firms should be run, we leave it to the lawyers themselves."

Ambiga said the Bar Council had written to the banks in the last two days expressing concern and asking them to review their policies.

"We will be following up on this matter with Bank Negara Malaysia," she added.

It was reported that the requirements would take effect on July 1 while the deadline for existing firms was a year after the new ruling was implemented.

It is learnt that at the moment there are no specific requirements for legal firms to be appointed by financial institutions.

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Bar Council cries foul over banks' discriminatory
written by Lim Sey Wee, Sunday, May 06 2007 02:44 pm

There are many banks in Malaysia. If any particular bank imposes such condition, don't do any business with that bank. Market forces will then determine whether such condition is business-friendly or not. Affirmative action mah!

Bravo!
written by Nicole Tan Lee Koon, Sunday, May 06 2007 03:43 pm

Way to go, Ambiga! This is yet another example of the Bar Council's ability to help and defend the members of the Bar. I hope the BC can follow up with the case and ensure that this policy is not steamrolled through.

Affirmative action is another good way. However, there are a few firms who would rather compromise their principles by adhering to the requirement for the sake of getting the work. What about the rest? Can many firms afford to boycott? The best is for the BC to help us in solving the problem by consultation.

Which bank?
written by David Soong Tshon Li, Sunday, May 06 2007 10:05 pm

Which are the banks concerned? Was it published in any of the news papers?

SOLDIER ON, AMBIGA!
written by Stephen Tan Ban Cheng, Sunday, May 06 2007 10:08 pm

If I am right, only certain elements at high levels within the banks involved will be going for such a pea-brained policy. When such policies are advocated, the rest will, in the name of Malaysian politeness, just go along - thus making such a policy become the policy of the banks.

These elements must be identified and rooted out of the banking system.

The job of the Bar Council is to ensure that such long-term anti-national policies never see the light of day.

Let us soldier on, Ambiga. I am 100 per cent behind this move.

DISCRIMINATION
written by Ng Hong Chai, Sunday, May 06 2007 10:56 pm

What about certain Banks' discriminatory practice against sole proprietorships, whereby such firms are not allowed to do certain things. It would appear that a sole proprietorship is deemed an unstable and a untrustworthy entity.The Banks must have been advised by some of our brethren.Can we also tackle this type of discrimination?

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