Sime sues ex-CEO, 4 others
Sime Darby is claiming at least RM338 million from the five over their alleged roles in the RM1.7 billion losses suffered by its energy and utilities division this year.
Conglomerate Sime Darby Bhd has sued its former group chief executive officer Datuk Seri Ahmad Zubir Murshid and four senior executives over their alleged roles in the massive RM1.7 billion losses suffered by its energy and utilities (E&U) division this year.
The executives, all under the E&U division, are former Sime Darby Energy Sdn Bhd vice president Datuk Mohd Shukri Baharom, chief financial officer Abdul Rahim Ismail, head of oil and gas Abdul Kadir Alias and senior general manager of Sime Darby Engineering, Mohd Zaki Othman.
“They are being sued for breaches of duties owed to the Sime Darby Group.
“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 said in a statement yesterday.
Zubir and the other executives could not be reached for comment.
Sime is claiming at least RM338 million from the five, with almost half of that from Zubir and Shukri. It is also seeking damages for losses caused by them in three projects and any aggravated or exemplary damages.
Specifically, the suit deals with three projects, namely the Bulhanine and Maydan Mahzam project with Qatar Petroleum, the Maersk Oil Qatar project and building of marine vessels for the Maersk Oil Qatar project.
The suit was filed at the Kuala Lumpur High Court yesterday.
Sime recorded RM1.7 billion in cost overruns for the three projects and the Bakun hydroelectric dam project earlier this year, causing it to allocate a RM2.1 billion provision.
As a result, the government-linked company in July established an investigative reports review committee, carried out a forensic audit and appointed legal advisers.
Zubir was asked to take a leave of absence in May and the following month, Datuk Mohd Bakke Mohd Salleh was named acting president and group CEO.
The extra costs led Sime to post losses in the third quarter to March 2010, its first quarterly loss since its mega merger with state-owned Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd in December 2007.
Losses dragged on to the fourth quarter ending in June 2010 but Sime continued to be profitable for the full year and has bounced back with a first-quarter profit for fiscal 2011.
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