KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded Ireka Corp Bhd
(Ireka) and seven of its former directors for breaches of the Bursa Malaysia Securities Main Market Listing Requirement, while imposing total fines of RM425,000 on the directors.
Bursa Malaysia Securities issued a statement today, announcing that the construction firm has been publicly reprimanded for three violations. These include the company’s announcement regarding a letter of award (LOA), its failure to disclose the status of the articles of agreement (AOA), and a delay in announcing the termination of the contract.
The exchange said the breaches were committed while Ireka was still listed on the Official List of Bursa Malaysia Securities, notwithstanding that the company had been delisted on March 10, 2026.
Bursa Malaysia Securities said the LOA announcement dated Oct 8, 2024, in relation to a RM1.07 billion subcontract for the Pan Borneo Sabah Phase 1B project, had failed to disclose material information, including the multi-level subcontracting arrangement and the fact that the LOA was subject to approvals and funding being secured.
It said the omission deprived investors of a full understanding of the project structure and associated risks, particularly the uncertainty surrounding the continuation of the LOA.
The exchange also found that Ireka failed to immediately announce the non execution of the AOA within the stipulated timeframe and subsequent extensions, as well as the termination of the LOA arising from the termination of the project operation management agreement on June 30, 2025.
According to Bursa Malaysia Securities, seven directors at the material time had breached paragraph 16.13(b) of the Main LR for permitting Ireka to commit the breaches.
Former group managing director Datuk Mohd Hasnul Ismar Mohd Ismail and group deputy managing director Chairil Mohd Tamil were each publicly reprimanded and fined RM50,000 for the LOA announcement breach, and jointly reprimanded and fined another RM50,000 each for the AOA announcement breach and termination announcement breach.
Former executive director Chow Sung Chek Simon was publicly reprimanded and fined RM50,000 for the LOA announcement breach and RM25,000 for the termination announcement breach.
Meanwhile, former non-independent non-executive chairman Tan Sri Mohd Ismail Che Rus, independent non-executive director Shahruladeri Mohamad Adnan and independent non-executive director Norhaizam Mohammad were among those also publicly reprimanded and fined over the breaches.
Bursa Malaysia Securities said that timely, full and accurate disclosure of material information was of paramount importance to enable investors to make informed investment decisions and to maintain market integrity and investor confidence. - Bernama
