Sime plans legal action to recover RM2.1bil losses
By Leong Hung Yee, The Star
KUALA LUMPUR: Sime Darby will initiate legal proceedings by year-end to recover the RM2.1bil losses it suffered due to mismanagement and wrongdoing at its energy and utilities (E&U) division.
The conglomerate has identified individuals involved in the scandal, but did not reveal their names to the press because of the impending suit.
“For us, it is just a civil action to recover whatever money we have lost due to mismanagement or misdeed,” Sime Darby acting chief executive officer Datuk Mohd Bakke Salleh said after the group’s AGM here yesterday.
He said the group would leave the criminal aspects for the Malaysian Anti-Corruption Commission (MACC) and the Securities Commission (SC) to investigate.
He declined to reveal details or disclose the forensic report for legal reasons.
Sime suffered RM2.1bil losses in its E&U division in the financial year ended June 30, resulting in its group chief executive Datuk Seri Ahmad Zubir Murshid being asked to take a leave of absence.
Chairman Tun Musa Hitam told shareholders that Sime would leave it to the MACC and SC to take further action against those responsible for the losses.
“As you know, criminal action is not within the purview of the company but in the hands of the authorities,” he said after the AGM, which lasted more than four hours.
“Until a case is filed and notice served, the legal counsel has advised that details must remain confidential.”
The final report of the external consultants was submitted to the investigating committee on Sept 14 and was considered by the board on Sept 20.
Independent forensic auditors KPMG and Deloitte Enterprise Risk Services Sdn Bhd and legal consultants were appointed to look into the situation in four projects, including the Bakun dam, led by the E&U division.
Sime Darby’s six core businesses are plantation, property, motor, industrial, healthcare and E&U.
Meanwhile, Minority Shareholder Watchdog Group chief executive officer Rita Benoy Bushon said questions were raised at the AGM on the forensic audit.
“We have waited this long. They (the board) said the suit will be filed by year-end. We should see what comes up next,” she said.
At the AGM, shareholders elected five new board members. One board member resigned while six others did not seek re-election.
The six directors who were re-elected were Musa, Tan Sri Dr Wan Mohd Zahid Noordin, Tan Sri Datuk Amar (Dr) Tommy Bugo, Datuk Seri Lim Haw Kuang, Sreesanthan Eliathamby and Tan Sri Andrew Sheng Len Tao.
The new directors are Tan Sri Hamad Kama Piah Che Othman, Tan Sri Dr Yusof Basiron, Zaiton Mohd Hassan and Azmi Mohd Ali while Bakke was appointed executive director.
Bakke said audit committee chairman and board risk committee member Raja Tan Sri Arshad Raja Tun Uda had tendered his resignation effective today.
No specific reason was cited for his resignation or for those who did not seek re-election.
The six board members who did not seek re-election were deputy chairman Tun Ahmad Sarji Abdul Hamid, Dr Arifin Mohamad Siregar, Tan Sri Dr Ahmad Tajuddin Ali, Datuk Seri Mohamed Sulaiman, Datuk Dr Abdul Halim Ismail and Datin Paduka Zaitoon Othman.
