Sime Darby still under probe

  • Nation
  • Friday, 11 Mar 2011

THE Forensic Audit Report on the RM2bil losses suffered by Sime Darby cannot be revealed as investigations into the company and its staff are still ongoing.

Prime Minister Datuk Seri Najib Tun Razak said the Malaysian Anti-Corruption Commission (MACC), the Companies Commission and the Securities Commission were still investigating the company and its staff.

“We cannot reveal the details of the Forensic Audit Report as of now because it will affect investigations carried out by the authorities,” he said in a written reply to Wee Choo Keong (Ind-Wangsa Maju), who wanted to know why the report had not been tabled in Parliament.

Najib, who is also the Finance Minister, said that with the legal action taken by Sime Darby against responsible parties, it would be sub judice to reveal the report because it would give the defendants opportunity to gain evidence and the identity of the individuals named in the report.

Sime Darby suffered RM2.1bil losses in its energy and utilities (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.

The conglomerate had on Nov 16 last year announced that it would initiate legal proceedings by the year-end to recover losses it suffered due to mismanagement and wrongdoings in the E&U division.

On Dec 23 last year, legal action was taken against Zubir, Datuk Mohamad Shukri Baharom (former executive vice-president of the E&U division), Abdul Rahim Ismail (the division’s former chief financial officer), Abdul Kadir Alias (the division’s former head of the oil & gas business unit) and Mohd Zaki bin Othman (former senior general manager of Sime Darby Engneering Sdn Bhd).

On Dec 24, legal action was taken against Zubir, Shukri and Rahim over, among others, the Bakun project.

Najib said that at the same time, the MACC had initiated a separate criminal suit against three other individuals – Zamri Mohd Iderus, Mazhazmi Jamaludin and Mohd Zaki Othman – over various corruption charges related to several projects under the group’s E&U division.

To another question, the Finance Minister said Malaysia’s data on economic and financial transactions with foreign countries was as recommended by the International Monetary Fund (IMF).

“Our recorded errors and omissions (E&O) outflow was RM135.3bil (US$37.9bil) between 2000 and 2009. The amount accounted for less than 2% of Malaysia’s trade.

“The E&O also reflected unrecorded financial outflow through informal channels, which may include funds from illegal activities,” he said in a written reply to Lim Kit Siang (DAP-Ipoh Timur).

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