KUALA LUMPUR: Malaysia's Sime Darby said today it has set up a task force to investigate its energy and utilities division to address "the tough and challenging situation it is currently facing".
The Star newspaper had cited unnamed sources yesterday as saying Sime Darby has incurred more than RM1 billion in cost overruns for carrying out civil works on the Bakun dam.
"The group would like to confirm that a task force is investigating all aspects of this division's business operations," Sime Darby said in a statement posted on its website.
"The task force has yet to complete its investigations, and once completed, the group will make all relevant disclosures during its third quarterly results announcement on May, 27 2010."
"The Sime Darby management is aware of the difficulties and challenges besetting its energy and utilities division, especially with regard to operational efficiency and project management, and has instituted a new management team at the division."
It said it is addressing the situation by implementing appropriate measures.