State-run Employees Provident Fund (EPF) will not directly manage the banking operations of Rashid Hussain Bhd after winning control of the debt-laden group.

"EPF will have minimal representation as we want to leave it to professional directors and professional management to oversee the running of the bank," EPF said in a statement issued late yesterday.

It was announced Thursday that EPF had beaten two rivals for Utama Banking Group Bhd's 32.8 percent stake in RHB with a new offer of RM2.25 billion.

EPF said its interest in the group - comprising RHB and its unit RHB Capital, which in turn owns RHB Bank - was a long-term investment.

"Obviously, it makes sense for us to source the best talent to lead the banking group and strengthen all aspects of the company's operations including consumer and investment banking," EPF said.

Separately, Kuwait Finance House Malaysia, a consortium of Middle East interests, which had offered RM2.16 billion for RHB, said late Thursday it hoped to have a role to play in the newly struck deal despite being a losing bidder.

"Subject to regulatory approvals, the consortium is confident that it would have a role to play in this new development, to create the world's largest, most innovative and respected global Islamic bank," KFH Malaysia said in a statement.
Islamic banking group Kuwait Finance House led the Middle Eastern consortium which included the Gulf Cooperation Council of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The group had said it was prepared to pump in RM12 billion to create the world's largest Islamic bank.

DAP objection

Meanwhile, opposition Democratic Action Party (DAP) said it "strongly objects" to EPF owning and managing the bank, asserting that it has no expertise in doing so and deviates from its role as a fund manager.

"The acquisition brings about very significant risks to the security of the hard-earned savings by Malaysians for their retirement," DAP said in a statement Friday.

It said the EPF was "uncessarily exposing ordinary Malaysian workers' savings to a multitude of major risks.

"The government must ... block the acquisiton of RHB by EPF in the interest of Malaysians otherwise it might be staring at another banking crisis waiting to happen," the statement said.