Tuesday, September 21, 2010
Sime Darby's forensic audit report will not be made public
Sime Darby Berhad has informed Bursa Malaysia that it does not intend to make public the forensic audit report on losses incurred by the group, which now runs into billions of ringgit.
In a filing to the bourse last night, Sime Darby admitted "possibilites of breaches of duties and obligations, and inappropriate conduct on a prima facie basis."
Here's the full Bernama report:
KUALA LUMPUR, Sept 20 (Bernama) -- Forensic and legal consultants have completed investigations into Sime Darby Bhd's projects in the energy and utilities division and submitted reports today to the conglomerate's board.
Four key projects being investigated are the Bulhanine and Maydan Mahzam project with Qatar Petroleum, the Maersk Oil Qatar project, the Bakun hydroelectric dam and the Marine Project.
In a filing to Bursa Malaysia today, Sime Darby said the investigations revealed possibilites of breaches of duties and obligations, and inappropriate conduct on a prima facie basis.
It said the board had resolved to initiate legal proceedings and had lodged reports with the relevant authorities.
The board has been advised to keep details of the report confidential and nature of such proceedings so as not to adversely affect the interest of the group.
On May 27, Sime Darby's energy and utilities division reported an operating loss of RM1,019 million for the first nine months ended March 31, 2010.
This was after recording provisions for the oil and gas and engineering sub-segments which amounted to RM964 million that was announced on May 13.
I find it utterly ridiculous that Sime Darby has saw it fit not to reveal the findings to its shareholders. Sime Darby is a GLC and it is dealing with public funds.
I hope Sime Darby's shareholders attending the company's AGM on Nov 16, will demand that the report is made public.