17th Jun 2008 08:16
BANK LEUMI LE-ISRAEL B.M.
(GUARANTOR - GUARANTEED EURO MEDIUM TERM NOTE
PROGRAMME OF LEUMI INTERNATIONAL INVESTMENTS N.V.)
Translation of Immediate Report
Bank Leumi le-Israel B.M.
Registration No. 520018078
Securities of the Corporation are listed on The Tel Aviv Stock Exchange
Abbreviated Name: Leumi
Leumi House, 34 Yehuda Halevi Street, Tel Aviv 65546
Phone: + 972 3 5148111, + 972 3 5149419; Facsimile: + 972 3 5149732
Electronic Mail: jennifer@bll.co.il
17 June 2008
To: Israel Securities Authority (www.isa.gov.il)
The Tel Aviv Stock Exchange (www.tase.co.il)
Immediate Report regarding an Event or Matter falling outside the Ordinary Course of Business of the Corporation
Pursuant to Regulation 36(a) of the Securities (Periodic and Immediate Reports) Regulations, 1970
Nature of Report: Irregularities at Bank Leumi
Bank Leumi le-Israel B.M. (the "Bank") has this morning published the following Press Release:
"AUDIT BY LEUMI'S INTERNAL AUDIT DIVISION FINDS IRREGULARITIES
IN THE APPROVAL OF LOANS BY A FORMER BRANCH MANAGER
The Bank contacted the police and sent the manager on leave until a further decision.
A routine audit by the Internal Audit Division of Bank Leumi le-Israel B.M. during the last few months has disclosed irregularities in the approval of loans by Mr. Menachem (Miki) Friedman, while he served as manager of a branch of Bank Leumi.
The audit indicates an exceptional occurrence, but this will not affect the Bank's customers in any way. Further, it should be noted that to the best of the knowledge of the Bank, material losses have not been caused to the Bank.
The audit indicated, inter alia, matters which the Bank was unable to examine by itself, and it was therefore decided to contact the police so that they could examine these aspects. In addition, Mr. Friedman was immediately sent on leave until the matter can be clarified and decisions taken in his regard.
The Bank has reported the audit findings as required to the Supervisor of Banks at the Bank of Israel. In addition, since Mr. Friedman at present serves as Managing Director and CEO of Bank Leumi (UK) plc, the Board of Directors of Bank Leumi has recommended to the Board of Directors of Bank Leumi (UK) that they appoint Mr. Collin E. Cumberland, Director of Commercial & Corporate Banking of Bank Leumi (UK) and Ms. Lesley J. Secretan, Director of Finance & Operations of Bank Leumi (UK) as acting CEOs for the present.
It is emphasized that this matter is in no way connected with Bank Leumi (UK) or its customers."
Date and time at which the corporation first became aware of the event or matter:
17 June 2008 at 08:00.
________________________________________________________________
Name of Electronic Reporter: Jennifer Janes, Position: Executive Vice President, Group Secretary
POB 2 Tel Aviv 61000, Phone: + 972 3 5149419, Facsimile: + 972 3 5149732,
Electronic Mail: jennifer@bll.co.il
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