KUALA LUMPUR: SIME DARBY BHD [] said there would not be additional provisions required to be made for the four key projects in the energy & utilities (E&U) division, which has suffered heavy losses.
It said on Wednesday, Sept 22 the group had made the necessary provisions in the financial statements for the year ended June 30, 2010 based on the progress, cost incurred, cost estimated to completion and the technical consultants' report.
'Arising from the forensic audit, there are no additional provisions required to be made. The audited financial statements for the year ended June 30, 2010 are not expected to differ from that of the announcement made on Aug 26, 2010,' it said in response to queries from Bursa Malaysia Securities.
The four projects in the E&U division are the Bulhanine and Maydan Mahzam project with Qatar Petroleum; the Maersk Oil Qatar project; the Bakun hydroelectric dam project; and a project known as the 'Marine Project'.
Sime Darby said the oil & gas projects work group, in its report to the board on May 12, 2010, had made a number of key findings from their review of the four key projects.
Based on the findings of the work group and the consultants' reports on the projects, the board had appointed forensic consultants to conduct forensic audits into the projects.
An independent legal consultant also conducted a follow-through investigation to determine culpability and whether Sime Darby had civil recourse against those found to be culpable.
'Investigations by the legal and forensic consultants validate the findings of the work group. In addition, the consultants have found on a prima facie basis, that there may have been breaches of duties and obligations and inappropriate conduct,' it said.
Ask to clarify as to the nature of the breaches of duties and obligations and inappropriate conduct, Sime Darby replied that it 'will make the required announcement relating to material litigation once legal proceedings have commenced'.
It also announced that Datuk Azhar Abdul Hamid, the special adviser to acting president & group chief executive, had left the group with effect from Sept 1.
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It said on Wednesday, Sept 22 the group had made the necessary provisions in the financial statements for the year ended June 30, 2010 based on the progress, cost incurred, cost estimated to completion and the technical consultants' report.
'Arising from the forensic audit, there are no additional provisions required to be made. The audited financial statements for the year ended June 30, 2010 are not expected to differ from that of the announcement made on Aug 26, 2010,' it said in response to queries from Bursa Malaysia Securities.
The four projects in the E&U division are the Bulhanine and Maydan Mahzam project with Qatar Petroleum; the Maersk Oil Qatar project; the Bakun hydroelectric dam project; and a project known as the 'Marine Project'.
Sime Darby said the oil & gas projects work group, in its report to the board on May 12, 2010, had made a number of key findings from their review of the four key projects.
Based on the findings of the work group and the consultants' reports on the projects, the board had appointed forensic consultants to conduct forensic audits into the projects.
An independent legal consultant also conducted a follow-through investigation to determine culpability and whether Sime Darby had civil recourse against those found to be culpable.
'Investigations by the legal and forensic consultants validate the findings of the work group. In addition, the consultants have found on a prima facie basis, that there may have been breaches of duties and obligations and inappropriate conduct,' it said.
Ask to clarify as to the nature of the breaches of duties and obligations and inappropriate conduct, Sime Darby replied that it 'will make the required announcement relating to material litigation once legal proceedings have commenced'.
It also announced that Datuk Azhar Abdul Hamid, the special adviser to acting president & group chief executive, had left the group with effect from Sept 1.
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