Kuala Lumpur: Banks should not place “unrealistic and unreasonable demands” on their panel lawyers during the two-week nationwide shutdown as this could negate the restriction of movement order’s aim of slowing the spread of Covid-19, the Bar Council said.
Malaysian Bar president Salim Bashir said that the professional body representing lawyers has received “troubling reports” of several financial institutions — which may keep operating during these two weeks as they are “essential services” — allegedly compelling their panel law firms to maintain “strict timelines” when providing legal services and completing tasks for them.
“If these reports are accurate, it appears that these financial institutions are behaving as if it is business as usual,” he said in a statement.
Salim highlighted the difficulties and limitations faced by lawyers now as law firms may not open their offices during these two weeks as they are not an essential service.
“The Bar Council calls upon banks and financial institutions to not impose unnecessary demands and instructions on their panel lawyers, but to understand the situation on the ground, in light of the directive to close government and private premises, which essentially includes law firms.
“With the current public health crisis that is faced by our nation, this state of affairs, if proven true, is ethically unacceptable and potentially illegal,” he said.
Urging Bank Negara Malaysia to take note of some commercial banks and financial institutions that were instructing lawyers to perform their work without the physical files and other facilities normally available to them during these two weeks, Salim pointed out that lawyers may have to go to their offices to complete such work.
“In the end, this may result in lawyers being mobilised to return to their respective offices to meet the demand of their bank clients. The Bar Council is concerned that the movement and congregations of lawyers in the firm, in fear of any reprisals from their client banks, negate the social distancing directive of the authorities,” he said, referring to the practice of social distancing or staying at least one metre apart from others to prevent the spread of Covid-19.
Salim also expressed concern that lawyers working from their offices could be in breach of the government’s new regulations issued today on prevention and control measures against Covid-19 and that they would be in risk of bearing the penalty for “defiance or running afoul of the government order to close”.
Salim stressed that lawyers’ restricted movement and the mandatory closure of law firms’ offices are limitations to them completing set tasks, providing legal services and adhering to strict timelines.
“As such, the Malaysian Bar calls upon Bank Negara Malaysia and all financial institutions to suspend or temporarily relax standard operating procedures that require strict compliance with timelines, while the Regulations remain in force,” he said.
“The Covid-19 public health crisis puts our nation to the test and the Malaysian Bar hopes that all citizens — corporate and otherwise — stand together, arm in arm, to face this unprecedented challenge,” he added.
In the new government regulations today made by Health Minister Datuk Seri Dr Adham Baba, the list of essential services that can continue to operate from March 18 to March 31 include banking, finance, electricity, ports, airports, postal, prison, healthcare and medical, transportation, e-commerce, food supply, defence and security, and “any services or works determined by the minister as essential or critical to public health or safety”.
Law firms or legal services are not named in this list of “essential services” under the regulations.
The regulations are known as the Prevention and Control of Infectious Diseases (Measures Within the Infected Local Areas) Regulations 2020.
The Sabah Law Society (SLS) also urged banks to demonstrate understanding and compassion in light of the directive to close government and private premises.
SLS President Roger Chin said this is, especially, when the National Security Council has also directed that the general administration and other departments besides ATM and online services of financial institutions have only minimum operations/work from home.
“Likewise, SLS also calls upon government departments to exercise consideration and sympathy if panel lawyers are unable to meet deadlines in submitting documents within the timelines prescribed under their respective legislation.
“We urge government departments and Bank Negara Malaysia to take notice that some of the tasks involved in conveyancing practices will unavoidably delayed without the privilege of having the physical files and other facilities normally available.
“Insistence on meeting the usual deadlines at this critical time may be tantamount to encouraging legal firms and their staff to breach the restricted movement order.
“As such, SLS support the plea to government departments, Bank Negara Malaysia and all financial institutions to relax standard operating procedures requiring strict compliance with timelines whilst the Movement Control Order remains in force,” he said in a statement.
Chin said SLS has also been informed by its members that a number of financial institutions in Sabah are compelling their panel law firms to adhere to strict timelines in the provision of legal services and the completion of tasks.
He said SLS notes that the Movement Control Order allows financial institutions, being essential services as defined, to operate during the period it is in place. However, many of businesses providing supporting services to financial institutions, including law firms, necessary for such financial institutions to operate, function and provide its services are required to close to ensure the general prohibition of mass movements and gatherings across the country.
“As soon as possible, SLS will engage the stakeholders including Inland Revenue Board, Lands and Surveys Department and the Sabah Commercial Banks Association to resolve the time discrepancies,” he said.
Only with mutual respect and co-operation from the whole nation and all its players within will Malaysia be able to overcome Covid-19 together, he added.
