Sime Darby head told to step aside
Sime Darby Bhd president and group chief Datuk Seri Ahmad Zubir Murshid has been asked to take a leave of absence following concerns about costs overruns from the Bakun dam project.
Written by Yow Hong Chieh
KUALA LUMPUR, May 13 — Sime Darby Bhd president and group chief Datuk Seri Ahmad Zubir Murshid has been asked to take a leave of absence following concerns about costs overruns from the Bakun dam project.
Sime Darby chairman Tun Musa Hitam told a press conference today that pending the appointment of a new president and group chief executive, Datuk Azhar Hamid, executive vice-president of the plantation division, has been appointed acting group chief executive.
The announcement confirms an earlier report in The Malaysian Insider.
When asked if Ahmad Zubir’s leave of absence amounted to a dismissal, Musa said: “It is up to people to interpret. The fact is that he has left the group as of today.”
As for the possibility that Ahmad Zubir will face criminal charges, Musa said: “It’s still work in progress. We don’t decide. Our advisers will decide after looking through the circumstances.”
Musa added that the problems within the energy and utilities division were not restricted to the Bakun hydroelectric dam project, citing cost overruns for the QP, MOQ and Marine projects.
Sime Darby expects to make a loss of RM964 million in this quarter due to cost overruns from these four projects.
Group CFO Tong Poh Keow said the losses will definitely impact Sime Darby’s numbers for the total financial year but was confident that the company will not book a loss in FY2010.
“For the whole year cumulative results… we would expect it will positive,” she said, noting the group’s RM1.1 billion profit in the first half of FY2010.
