Thursday, December 23, 2010

Sime files RM177m suit against ex-CEO, four others

The E&U division racked up over RM2 billion in losses across four projects.
KUALA LUMPUR, Dec 23 – Troubled conglomerate Sime Darby Bhd filed a lawsuit today against former chief executive officer Datuk Seri Ahmad Zubir Murshid and four other key officials over the RM2.1 billion losses incurred in three projects.
It sought RM177 million in damages for the losses.
The government conglomerate also sued Datuk Mohamad Shukri Baharom, the former executive vice-president of the Energy & Utilities Division; the division’s chief financial officer, Abdul Rahim Ismail; the division’s oil and gas unit chief, Abdul Kadir Alias; and Mohd Zaki Othman, from Sime Engineering.
“They have all been sued for breaches of duties owed to the Sime Darby Group,” the company said in a statement released this evening.
It said the suit is to recover losses suffered by the Sime Darby Group in the Qatar Petroleum Project (QP), the Maersk Oil Qatar (MOQ) Project and the project which concerns the construction of vessels for use in the MOQ Project, known as the “Marine Project”.
“The Sime Darby Group is claiming from the defendants, inter alia, restitution for monies wrongfully paid out, damages for losses suffered, loss of profit, aggravated damages and costs,” it added.
In its statement of claim, Sime Darby alleged that the five accused acted as a “decision-making unit” in the energy and utilities division and were responsible for the division’s actions and omissions.
Sime Darby further alleged that the accused had been grossly negligent for allowing Sime Darby Engineering to pursue engineering, procurement, construction, installation and commissioning (EPCIC) projects in which it had no prior experience.
Ahmad Zubir, Shukri, Abdul Rahim, Abdul Kadir and Zaki were also accused of awarding EPCIC jobs to similarly inexperienced subcontractors and for failing to pursue claims for work not done.
Sime Darby will be represented by Zaid Ibrahim & Co as its solicitors, with veteran lawyer Tommy Thomas as its counsel.
The law firm had been appointed to conduct the legal investigation into losses suffered in the projects.
Today’s suit follows Sime Darby’s announcement in September that a forensic audit into the energy and utilities division had established a prima facie case of foul play and a failure to carry out duties and obligations.
Sime Darby’s woes first came to light in May when then-chief executive Ahmad Zubir was asked to take a leave of absence prior to the expiry of his contract following the discovery of RM964 million in cost overruns from the four energy and utilities projects.
The massive cost overruns bled the division and led to the announcement of Sime Darby’s first ever quarterly loss of RM308.6 million that same month.
In the previous corresponding quarter, Sime Darby had posted a profit of RM150.6 million.
The energy and utilities division, which contributed only 0.7 per cent to the group’s total operating profits in fiscal 2009, posted a loss of RM1.02 billion in the nine months to March, and a net loss of RM910 million for the third quarter of 2010.
The losses were the first since its formation in 2007, when it was merged with two other government-controlled plantation groups.
Analysts have said Sime taking action against the Zubir and other officials will mark a big step in improving the company’s image with investors and signal that more reforms are in works for Malaysia’s largest planter by assets.
New chief executive Datuk Mohd Bakke Salleh, a close ally of Prime Minister Datuk Seri Najib Razak, has pledged to restructure the firm’s businesses to allow for more board oversight.
Bakke has previously said that the company does not rule out divesting some of its businesses should they continue to drag on Sime’s profits, moving away from an earlier stance that it would keep its conglomerate model.
Sime shares edged 0.1 per cent lower to close at RM8.72, compared to the broader market that declined 0.6 per cent.

Tan's avatar
That should the way forward to instill public confidence on the conglomerate once used to be jewel of the crown among all the bluechips in KLSE. It has lost its shine after some bad corporate governance and scandals.
observer's avatar
observer· 5 hours ago
So what can you get from these people? NOTHING. It's just a waste of time and money. They have lost everything and the money has become dust.

It all boils down to incompetent people given the responsibility to do the job.

The government and many of our GLCs are doing the same thing over and over again. They keep on loosing money... then comes the bail-out with taxpayers' money.

In the Sime Darby case, is the government going to pump in money to stabilise it back?

From where is the money going to come from?
1 reply · active less than 1 minute ago
chotimur's avatar
chotimur· 4 hours ago
I just wondering....will any of those Board Members be responsible at all in this case ?
chotimur's avatar
chotimur· 4 hours ago
do u mean that all board members are not reponsible ????????
2 replies · active less than 1 minute ago
wong's avatar
wong· 3 hours ago
the Board definitely is responsible for the operation of the company, it include all the directors & chairman too.
D Khan's avatar
D Khan· 2 hours ago
We should tap the genius of these 5 people who can fooled the Board of Directors, all of whom are themselves smart people, one was a former Deputy PM
nomen's avatar
nomen· 4 hours ago
so, the chairman was in the dark? or sleeping on the job while the thieves cart away the loots? Otherwise, the chairman must resign.
1 reply · active less than 1 minute ago
bolehland's avatar
bolehland· 2 hours ago
In New Zealand, a minister resigned after her indiscretion in bringing along her husband on an overseas working trip was exposed by the Opposition. In Malaysia a similar incident happened and it was exposed by DAP but the minister (world lady) just stay put. In Malaysia, where got Chairman of GLC and Minister resign voluntarily one? (except CSL)Too 'thick skin' or 'no leadership by example'?
I will just allow Sime to take a paper judgment against me and face bankruptcy proceedings as well. So there goes your restitution and if you think you can trace the ill gotten monies, you have another thinking coming !!
adibdaniel's avatar
adibdaniel· 4 hours ago
I am not surprised in these case because this big company sime darby their fate will become like umno bn company the RENONG KONGLOMERATE GOES BANKRUP FOREVER.They only think how to rob the company money not making profit for the company.
1Malaysia's avatar
1Malaysia· 3 hours ago
Shame Darby, lost RM1.7billion for Sime Bank, another RM2.1billion for Sime Engineering........
Lawya's avatar
Lawya· 3 hours ago
its just a PR excercise to gain public support. Eventually Sime Darby will not be able to recover the losses as the decision to invest such huge sum money could not have been without a complete & thorough working paper. Once approval from the Board was given and that's it. The defendants will put a Defence that everything was done according to advices from experts & so forth. I suspect that if these people had crminally done something wrong, they would have been charged under the Penal Code or MACC already.
Giving high posts to Umnoputras is like giving flowers to the monkeys.
mashe's avatar
mashe· 2 hours ago
When the looting was in millions it went unnoticed. But when it started reaching the hundreds in a free for some then the ground caved in. So what paradigm shift are you talking about. It has been the same with many such as MAS, Free Trade (Raid) Zone etc.
apa lagi's avatar
apa lagi· 2 hours ago
What about the Chairman Of the Board? It is clear he is negligent of his fiduciary duties.
Macam Macam's avatar
Macam Macam· 1 hour ago
RM2.1 billion losses but suing them RM177 million in damages for the losses. Why taking action now? These 5 suckers will plea not guilty, as usual as GE is coming soon. After election, delay & dilly-dally until NFA.

Why sue them? Where is the so called independent MACC?

If the goverment is really serious, prompt & swift action already been taken. From small fish to big fish, one by one being caught. Probably need few lorries to load them to jail.

Suami isteri fail saman Sime Darby Auto lebih RM2j 

SHAH ALAM - Sepasang suami isteri dari Jengka 15, Pahang memfailkan saman bernilai RM2,026,222.75 terhadap Sime Darby Auto Connection Sdn Bhd kerana mendakwa cuai ketika melakukan penyelenggaraan kereta Ford Focus milik mereka. 

Kerani bank, Ab Aziz Ab Bakar, 35, dan Rohaidah Rofiei, 28, (peniaga) memfailkan saman itu menerusi peguam Muhd Azmi Talib di Pejabat Pendaftar Mahkamah Tinggi Sivil di sini, jam 2.30 petang semalam. 

Mereka selaku plaintif memiliki kereta yang didaftarkan 23 Februari 2006 dengan nombor CBX 900 menamakan syarikat yang juga pusat servis dan pengedar Ford Motor Company yang berpusat di Michigan, Amerika Syarikat sebagai defendan. 

Plaintif menuntut ganti rugi teladan dan ganti rugi teruk RM1 juta setiap satu serta ganti rugi khas RM26, 222.75 faedah pada kadar 8 peratus bagi setiap ganti rugi itu. 

Berdasarkan pernyataan tuntutan, plaintif mendakwa kira-kira jam 5.30 petang, 7 September lalu enjin kereta terjatuh semasa berhenti di persimpangan lampu isyarat di Mentakab, Pahang dan hasil pemeriksaan mendapati ia disebabkan satu skru ‘mounting’ tidak diikat. 

Plaintif mendakwa, dua bulan sebelum kejadian, iaitu 4 Julai lalu Ab Aziz menghantar kereta itu untuk pemeriksaan dan seliaan kerana masalah penghawa dingin yang tidak sejuk dan diarahkan meninggalkan kereta di premis defendan. 

Sehubungan itu, plaintif mendakwa defendan gagal memastikan enjin siap dipasang semula dengan sempurna. 

Plaintif mendakwa, kejadian itu menyebabkan plaintif menanggung kos baik pulih kerana enjin jatuh dan berisiko terlibat kemalangan serius yang boleh menyebabkan kecederaan atau kematian. 

Plaintif juga mendakwa bimbang dan takut menggunakan kereta itu apabila kerana keselamatan.

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