KUALA LUMPUR, Dec 17 — The Malaysian Anti-Corruption Commission (MACC) and the Securities Commission (SC) have found “possible breaches” of the Penal Code and the Companies Act in Sime Darby’s troubled energy division.The SC also said that it is working with Bursa Malaysia to identify any breaches in listing requirements and would be issuing show-cause letters to the “persons in breach”.
The enforcement agencies found the possible breaches after completing their review of the reports prepared by forensic and legal consultants appointed by the board of Sime Darby in the wake of massive losses in the energy and utilities division last year.“After the completion of the review, the MACC and the SC have earlier this week convened a meeting with the Royal Malaysia Police (RMP) and the Companies Commission of Malaysia (SSM) to share their findings of possible breaches under the Penal Code and the Companies Act,” said the two agencies in a joint press release.
“The relevant reports were also handed over to the RMP and the SSM for their further action with regard to breaches that fall within their respective jurisdictions.”MACC added that its investigations into the areas of corruption under the Anti-Corruption Act 1997 and Malaysian Anti-Corruption Commission Act 2009 are still ongoing, while the SC said it has initiated investigations into potential breaches of the Capital Markets & Services Act 2007.
The company suffered RM2.1 billion worth of losses in its energy and utilities (EU) division in the last financial year, resulting in its CEO Datuk Seri Ahmad Zubir Murshid being asked to take a leave of absence.
An Investigative Reports Review Committee chaired by Tan Sri Samsudin Osman was established in July to review the audit reports on the troubled EU division and the results of the forensic audit was considered by the board on September 20.
The conglomerate said last month that it will initiate legal proceedings by year-end to recover money it lost through possible mismanagement and wrongdoing of the energy projects.The controversial losses in the energy and utilities division were largely due to provisions made for cost overruns at four key projects — the Qatar Petroleum Project, the Maersk Oil Qatar Project, the Bakun Hydroelectric Dam Project and the Marine Project.Sime Darby managed, however, to report a first quarter net profit last month of RM687.9 million, breaking a streak of two consecutive quarters of losses due to the massive provisions in the energy and utilities division.
The energy and utilities division managed to register RM33 million in operating profit in the first quarter after booking RM777.3 million in provisions in the fourth quarter.“There won’t be any more provisions,” said Sime Darby acting president and CEO Datuk Mohd Bakke Salleh.To strengthen corporate governance in the wake of the huge division level losses, Bakke has spearheaded changes including implementing a two-tier board structure by January 1 next year with subsidiary boards consisting of members from the main board, senior management and industry professionals.
Source: http://www.themalaysianinsider.com/malaysia/article/macc-sc-ask-cops-to-probe-sime-energy-unit/
The enforcement agencies found the possible breaches after completing their review of the reports prepared by forensic and legal consultants appointed by the board of Sime Darby in the wake of massive losses in the energy and utilities division last year.“After the completion of the review, the MACC and the SC have earlier this week convened a meeting with the Royal Malaysia Police (RMP) and the Companies Commission of Malaysia (SSM) to share their findings of possible breaches under the Penal Code and the Companies Act,” said the two agencies in a joint press release.
“The relevant reports were also handed over to the RMP and the SSM for their further action with regard to breaches that fall within their respective jurisdictions.”MACC added that its investigations into the areas of corruption under the Anti-Corruption Act 1997 and Malaysian Anti-Corruption Commission Act 2009 are still ongoing, while the SC said it has initiated investigations into potential breaches of the Capital Markets & Services Act 2007.
The company suffered RM2.1 billion worth of losses in its energy and utilities (EU) division in the last financial year, resulting in its CEO Datuk Seri Ahmad Zubir Murshid being asked to take a leave of absence.
An Investigative Reports Review Committee chaired by Tan Sri Samsudin Osman was established in July to review the audit reports on the troubled EU division and the results of the forensic audit was considered by the board on September 20.
The conglomerate said last month that it will initiate legal proceedings by year-end to recover money it lost through possible mismanagement and wrongdoing of the energy projects.The controversial losses in the energy and utilities division were largely due to provisions made for cost overruns at four key projects — the Qatar Petroleum Project, the Maersk Oil Qatar Project, the Bakun Hydroelectric Dam Project and the Marine Project.Sime Darby managed, however, to report a first quarter net profit last month of RM687.9 million, breaking a streak of two consecutive quarters of losses due to the massive provisions in the energy and utilities division.
The energy and utilities division managed to register RM33 million in operating profit in the first quarter after booking RM777.3 million in provisions in the fourth quarter.“There won’t be any more provisions,” said Sime Darby acting president and CEO Datuk Mohd Bakke Salleh.To strengthen corporate governance in the wake of the huge division level losses, Bakke has spearheaded changes including implementing a two-tier board structure by January 1 next year with subsidiary boards consisting of members from the main board, senior management and industry professionals.
Source: http://www.themalaysianinsider.com/malaysia/article/macc-sc-ask-cops-to-probe-sime-energy-unit/
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