KUALA LUMPUR: SIME DARBY BHD [] is pursuing legal action in matters pertaining to losses suffered at the group's energy & utilities division (E&U Division), its chairman Tun Musa Hitam said.
At the AGM on Tuesday, Nov 16, he told shareholders that reports have been lodged with the Securities Commission (SC) and the Malaysian Anti Corruption Commission (MACC).
However, he said the group could not release details of the reports as the investigations were still underway.
'What I can tell you is: (I) civil action is being taken by the company; (II) it is expected that we will commence our legal proceedings before the end of the year and (III) in the forensic report, the advisors have identified individuals with prima facie culpability,' Musa said.
Musa said Sime Darby would leave it to the SC and the MACC, adding that criminal action was not within the purview of the company but in the hands of the authorities.
He said the group's role is to cooperate with the authorities and we have done so and will continue to do so as and when required.
'These two bodies have informed us that they are conducting further investigations. It is because of these on-going investigations that we are unable at this time, as advised by legal counsel, to make the (information in the reports) known to you. The board has been advised by legal counsel to keep confidential the details of the report and nature of such proceedings so as not to adversely affect the interests of the group,' he said.
May 13, 2010: The board announced that the group would have to make provisions of RM964 million in respect of four projects in its E&U Division. On the same day, president and group chief executive Datuk Seri Ahmad Zubir Murshid was asked to take a leave of absence.
(The board also announced that a Work Group had been set up in October 2009 to review the operations of the E&U Division after its performance in the year ended June 30 2009, particularly in respect of the Qatar Petroleum project.
(The scope of the work group was extended in February 2010 to cover the Bakun hydroelectric dam project, the Maersk Oil Qatar project and a project concerning the CONSTRUCTION [] of marine vessels. The board deliberated on the findings of the Work Group on May 12, 2010 at a 13-hour board meeting. In the interest of transparency and good governance, the board decided to reveal the recommendations of the work group the next day.)
June 14, 2010: The board announced the appointment of Datuk Mohd Bakke Mohd Salleh as acting president and group chief executive. Mohd Bakke took office on July 15, 2010.
July 6, 2010: To recap, the board of directors of Sime Darby had set up the Investigative Reports Review Committee with Tan Sri Samsudin Osman as the chair.
(This committee was set up to consider and review the draft Investigative Review Reports that were prepared by forensic and legal advisors appointed by the board with respect to the projects of the group's E&U Division. The Committee was to report any prima facie findings of culpable conduct and whether there was possible civil action that could be taken against those culpable.)
Sept 14, 2010: The final report of the external consultants was submitted to the committee on 14 September 2010.
Sept 20, 2010: The report was considered by the board. At this point the board was advised by legal counsel that the findings of the forensic audit should not be released.
At the announcement of its results for the financial year ended June 30, 2010, the group announced total provisions of RM2.08 billion at E&U.
At the AGM on Tuesday, Nov 16, he told shareholders that reports have been lodged with the Securities Commission (SC) and the Malaysian Anti Corruption Commission (MACC).
However, he said the group could not release details of the reports as the investigations were still underway.
'What I can tell you is: (I) civil action is being taken by the company; (II) it is expected that we will commence our legal proceedings before the end of the year and (III) in the forensic report, the advisors have identified individuals with prima facie culpability,' Musa said.
Musa said Sime Darby would leave it to the SC and the MACC, adding that criminal action was not within the purview of the company but in the hands of the authorities.
He said the group's role is to cooperate with the authorities and we have done so and will continue to do so as and when required.
'These two bodies have informed us that they are conducting further investigations. It is because of these on-going investigations that we are unable at this time, as advised by legal counsel, to make the (information in the reports) known to you. The board has been advised by legal counsel to keep confidential the details of the report and nature of such proceedings so as not to adversely affect the interests of the group,' he said.
May 13, 2010: The board announced that the group would have to make provisions of RM964 million in respect of four projects in its E&U Division. On the same day, president and group chief executive Datuk Seri Ahmad Zubir Murshid was asked to take a leave of absence.
(The board also announced that a Work Group had been set up in October 2009 to review the operations of the E&U Division after its performance in the year ended June 30 2009, particularly in respect of the Qatar Petroleum project.
(The scope of the work group was extended in February 2010 to cover the Bakun hydroelectric dam project, the Maersk Oil Qatar project and a project concerning the CONSTRUCTION [] of marine vessels. The board deliberated on the findings of the Work Group on May 12, 2010 at a 13-hour board meeting. In the interest of transparency and good governance, the board decided to reveal the recommendations of the work group the next day.)
June 14, 2010: The board announced the appointment of Datuk Mohd Bakke Mohd Salleh as acting president and group chief executive. Mohd Bakke took office on July 15, 2010.
July 6, 2010: To recap, the board of directors of Sime Darby had set up the Investigative Reports Review Committee with Tan Sri Samsudin Osman as the chair.
(This committee was set up to consider and review the draft Investigative Review Reports that were prepared by forensic and legal advisors appointed by the board with respect to the projects of the group's E&U Division. The Committee was to report any prima facie findings of culpable conduct and whether there was possible civil action that could be taken against those culpable.)
Sept 14, 2010: The final report of the external consultants was submitted to the committee on 14 September 2010.
Sept 20, 2010: The report was considered by the board. At this point the board was advised by legal counsel that the findings of the forensic audit should not be released.
At the announcement of its results for the financial year ended June 30, 2010, the group announced total provisions of RM2.08 billion at E&U.
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