Thursday, May 27, 2010

If there was fraud in Sime Darby, will anyone go to court?


Phoenix Rising? Azhar (Azhar who?) aims to double Sime Darby's turnover and net income in 5 years. That's not ambitious, that's VERY ambitious. But as the acting Group Chief Exec said in an exclusive chat with a couple of business-savvy bloggers after the Press conference to announce SD's 9-month losses yesterday, “Why not? We have to aim to achieve”.
Read the conversation, h e r e.

With updates
Zubir's Letter of Indemnity. In 1999, Ismail Zakariah became the first CEO of a bank charged in court for breaching the banking laws here. He was from Sime Bank. The previous year, Sime Darby had reported losses of RM1.81 billion, the first time it was in the red, as a result of the Sime Bank fiasco.

Today, a much bigger Sime Darby is expected to announce a burning hole in its financial results, the result of losses in Qatar Petroleum and Bakun (and Ramunia?*). The company's Group Chief Executive has been on "leave of absence" since the Board chaired by Musa Hitam, the former deputy prime minster, had discovered the gaping hole. In January, a top executive of the company's energy division was told to go after signs of massive cost overruns in the Qatar project became visible.

Interestingly, the Group Chief Exec, it now appears, had signed a letter or indemnity that, in effect, waived all rights of Sime Darby to take the former energy division executive to court.

And this blessed individual from the energy division was not told to go in the way you and I understand the phrase to mean. The Group Chief Executive who is now on leave of absence had given him quite a nice parting gift the works out to about half a million ringgit, and this has enabled the former energy division chief to take to the KL nite life with a vengeance. 
* Sime Darby's questionable purchase of Ramunia Bhd's yard in Teluk Ramunia is set to become a new saga in the current debacle. Last year Sime offered to take over Ramunia, lock stock and barrel, for RM232 million, but by April this year it ended up buying just the yard assets for RM530 million. Ramunia a PN 17 status company, suffered a combined net loss of RM330 million over the last two years.
Updated, Friday:
 Bernama's full strory, here

46 comments:

Anonymous said...

Huh? I say bro. We are all waiting for the expose on the Xinjiang woman. What an anti climax? Is it true that Sime's ex head honcho acquired the Xinjiang woma thru sub contractors in China (where SD is building ports)?


That said woman was then put on Sime payroll 'to do her nails' and maybe smoke someone's cigar?

I wont be surprised if ex CEO gave a letter of indemnity to the former head of Energy Div. His name is Shukri, known to be corrupt among Sime's other contractors and suppliers. Even small amounts dia sapu.


RM500k to partake of KL's night life?

Lets see the red ink Bro.

Hj Hoe.

Rocky's Bru said...

Hj Hoe,

Sorry lah, I must keep the details on the Xinjiang babe private for now. Too personal, pun. But since you brought her up, I'd like to take this opportunity to clarify one thing -- the Hermes-loving babe has nothing to do with Azeez with double-E. It has come to my knowledge that Azeez had a hard time explaining that he had nothing to do with the woman, so I hope this clarification from me will help him sleep easier from now.

Thank you.

Old Fart said...

I would be shocked!! Aren't all these guys the best of the best of what UMNO wishes to thrust on us as the best? How can the best then now turn out to be crooks? I wouldn't hold my breath bro!!

Rocky's Bru said...

Dear Old Fart,

That's why many of us Melayus inside and outside of Umno have been working so hard these last few years to weed out those Melayus in Umno and their friends outside the party who enrich themselves at the expense of others.

We have brought down some, but there are crumbs we still need to flush down the toilet.

Anonymous said...

Dont forget that Tabung Haji suffered total paper losses of more than RM160mn after buying Ramunia shares in 2007. So who should we bring to the court?

Will the CEO make a statement something like "the information provided by the Investment team was misled"? or "we followed a very stringent investment procedure", etc, etc.

Someone in Tabung Haji should take the blame, otherwise we are letting the penipu and perompak (we know who you are) loose for free.

Old Fart Smelly Armpit said...

Rocky Bru

You should also flush out that barfly Old Fart.

Typical keling ... complain complain complain. He is the type who will never assume any responsibility for the mere pleasure of complaining and criticisng others.

Cant trust those cakap banyak type macam Old Fart. There are usually more corrupt and inefficient than those they claim as corrupt and inefficient.

Anonymous said...

Sarji : Apo nak dikato?

Tajudin A : Takdirrrr Tan Sri.

Sarji : Takdeeer apo... siapo yg songklap?

Zubeer: Ni mesti kerja Shukri.

Sarji : Shukri mano?

Tajudin : Nak Baharom, Tan Sri.

Sarji : Mano depa . . main CARROM kah?

Zubeer : Tak ade, Tan Sri, Depa tengah minum BEER kat Bangsar

Sarji : Cis . . Din anu cya sama hang, kat tenaga, hang ni Mr Clean.

Zubeer : hehehehehehe

Tajudin : Dulu lain, Skg lain.

Sarji : Apo Rocky tuhliss pasai letter of indemninity tu? Betui kah?

Tajudin : Betui, Tan Sri, si beer yg ok kan surat tu.

Sarji: Woi beer jgn songeh sgt, panggil si anak Baharom.

Zubeer : Ok Tan Sri.

Zubeer : Hello Shukri, where are you mann?

Shukri : Me in Bangsar, having drinks and partying with chicks. join me lah.

Zubeer : Not bad for a short bald guy... but Sarj wants to see youlah.

Shukri : Ckp aje tak bole, aku kan ado letter of indeminity dari hang, suruh aje depa dan musang hitam tu pi main layang layang.

Mohd S Baharom.

eddy said...

Bro, can the letter of idemnity or get out of jail card signed by the Group Chief Executive stands in court if a commercial crime has been committed? I think not.

These latest revelations on the Ramunia loss on top of the Bakun and Qatar Petroleum loss is too much to bear. Many of us are demanding an RCI to find out how a huge GLC like Sime Darby could make this much loss, is it due to fraud/corruption or just plain lack of business acumen and bad Governance or just luck. Some Goverment Linked Companies are slowly becoming Government Losing Concerns instead of propelling the Country's growth they are becoming liabilities to the nation. Yes Bro, there must be a concerted effort to weed out ALL this free loaders who who are taking us for a ride.

Another thing is after all these investigations and I hope prosecutions, I think Sime Darby has grown too big and too diversified to be managed properly by good governance alone..it should be broken again back to Sime Darby, Golden Hope and Guthries. Besides commercial banks actually earning millions for the forced merger, and maybe some getting fat commissions I think the nation has not benefited at all from this merger.

Anonymous said...

Salam Dato',

Dear Old Fart,

I wish to emphasize that it is not UMNO, but the crooks and the corrupts in UMNO are the ones who wish to project them as the best.Yes,indeed they the best,but the best of the crooks.

Askar Tua

Anonymous said...

Hidup Zubir, Hidup Mohh Sharom, Hidup Tajudin Ali.

Mati lah Malaysia macam ini.

Anonymous said...

Hahahaha..definitely not the crooks.

It's just another day.

PJ Moorthy said...

Read all about Jewish retaliation against Anwar here!

http://www.malaysia-instinct.com/english/index.php?option=com_content&view=article&id=15165:influential-jewish-organisation-bnai-brith-condemns-brother-anwar-bin-ibrahim&catid=35:main-news&Itemid=82

PJ Moorthy said...

read about Jewish retaliation against Anwar here!

Old Fart said...

Old Fart Smelly Armpit

Sorry to have to disappoint you...just not corrupt! The traffic cops when they stop me, actually find it disappointing that I prefer they either let me go or give me the summons!

And rocky, all i can say is, wish you best of luck. But with people like the Tun still around I think you got a hard fight ahead.

thestarsucks said...

It will be interesting to see how the audited annual report will read this time by their auditors. Not easy to hide this amount leh. Too big to throw under CAPEX now...

donplaypuks® said...

No letter of indemnity can stand up in court:

1. for breach of fiduciary duties and/or fraud.
2. it is ultra vires the MD/CEO's or board of directors' powers.
2. it is not ratified by the shareholders.

The powers that be should study SD's Memorandum and Articles of Association (M&A) for further clarification.

dpp
we are all of 1 race, the Human Race

Anonymous said...

Salam,

To make Sime Darby more manageable, the government must demerge it into several conglomerates, each with a core business; covering both upstream and downstream activities.

It has to be done quickly because no one CEO can handle a very big corporation with too diversified businesses effectively.

Another thing that we Malaysians have to request is for the Government to punish the culprit(s) who misadvised on the viability of the merger exercise. If there is no punishment, this mistake will surely be repeated in the future. Does anyone like to be made a fool by letting similar frauds, misappropriations, and falsifications to repeat in the future?

Sime Darby was once South East Asia's largest multinational... but sadly, it has now lost its glitters. What a sad story.

So, those in power, please conduct a thorough investigation; not only into the cost overrun isssue, but also into the people who misled the Government on the viability of the merger exercise!

Kita semua pergi sekolah. Jadi kalau tidak mahu mendengar permintaan rakyat dari sekarang jangan menyesal jika mendapat perkhabaran buruk semasa PRU13. Jangan biarkan nasi menjadi bubur. Bubur akan basi jua jika disimpan lama(kerana tidak ramai orang yang suka makan bubur. Ini adalah kerana ramai orang menganggap bubur makanan orang yang tidak sihat, sedangkan kita semua sihat)

Zaib

Anonymous said...

As usual this episode will be played out over the next few months ala PKFZ. Everyone that has an asshole will have an opinion or two. Then it will be quiet again. And everyone will be glued to the idiot box for the World Cup. Soon this slimy SIME saga (SSS) will be just a footnote in the chequered history of this tinpot nation. We deserve what we got!

Anonymous said...

Months before SYNERGY Drive was created. Ahmad Sarji and Andrew Sheng formed a special committee that would eventually lead to the formation of Synergy Drive AKA Sime Darby.

Andrew Sheng, and Ahmad Sarji are ultimately responsible.

Anonymous said...

MELAYU itu orang yang bijaksana
Jika menipu pun masih bersopan
Bila mengampu bijak beralas tangan.

MELAYU itu berani jika bersalah
Kecut takut kerana benar
Janji simpan di perut
Selalu pecah di mulut.

Long Wong.

Bangkit rakyat said...

All this wanton wastages is because of those politicians that Rockybru now support after he abandoned the rakyat's struggle

Anonymous said...

kalu Bayern Munich dikenali sebgi FC Hollywood, kini Sime Darby Bhd, dikenali sebgi Hollywood Bhd.

Anonymous said...

aiyah,,, business as usual lah
Krony Kapitalism
CHinese say "Kang Tao"
Biasa Lah. You korek me I korek lagi best.

Make money & be happy...since the early Bank Bumi Scandal of the 1970s - what has changed?

Askar kaki @ foot soldier

Anonymous said...

Tun Perak : Selagi ado Kehriss Taming Sari, Selagi tu lah, Tuah x dpt dialahkan.

Shurki Baharom: Selagi ado LETTER OF INDEMINITY, selagi tu lah, hang x bole dipenjarakan. hahahahah hahahah kakakkaka wakaka wawaakakakak.

Anonymous said...

Tajudin Ali orgnya baik, gitu jugak dgn Shukri Baharom, Ahmad Sarji dan Zubir.

Rocky, usah ko nak cari salah dlm kompeni Melayu. Aibkan org kito jee.


Zhu Raei Mie

Anonymous said...

The new acting president and chief executive officer of government-linked conglomerate Sime Darby Berhad was today visited by the Malaysian Anti-Corruption Commission (MACC) as part of their the probe into the recent massive loss incurred by the company.

HOW ABOUT the OLD CEO, Zubir and Mohd Shukri Baharom, the former head of energy????????

Anonymous said...

What a letter of idemnity ? Mcm loteri kot?

Anonymous said...

PAK lah's hand is behind all of these. And what is NAJIB going to do?

Well he is going to appoint PAK Lah's son in law Khary Jamalludin as a minister.

I have lost confidence in Najib but not UMNO.

Hidup Tan Sri Muhyddin Yasin

Anonymous said...

They want to be in the limelight first before their lights go off...

Alahai,

Ngaku2 ajer kan habis cerita, tak usah tunggu Nala2 bawa tape, naik turun Court, malu kat menantu2 bisan2 nanti...

PERWIRA

Old Fart said...

But why UMNO? Of what use is UMNO anyway? Its gone past its use by date already as it is. Cant you guys think in terms of a new order or something? Why should it revolve around just UMNO? Like as if its a permanent feature tasked with the responsibility of governing Malaysia! Look outside the box la.

PANJI HITAM 61 said...

"That's why many of us Melayus inside and outside of Umno have been working so hard these last few years to weed out those Melayus in Umno and their friends outside the party who enrich themselves at the expense of others."

BETOI TU BRU... kita jumpa saturday dinner at PWTC !

Thanks for the MM column... great job.

Habib RAK said...

Hi Rocky, I'm wondering, is it possible to contract out criminal offense? CBT is a criminal offense and nobody can provide immunity or agree on immunity as a private deal.

EMC said...

Saya masih belum faham situasi sebenar ..akan terus mengukiti perkembangannya

Anonymous said...

another sad and frustrating story for the rakyat..

Anonymous said...

Come on!!!

Must tell where the money go.. MACC.. go and do your job!! And what-ever-govern-agency that need to involve.. go!!

Either TBH's-Ronnie Liu case or Sime Darby, wrong-doing is wrong!!

We want to know why this gigantic GLC turns to an-ant-waiting-to-be-step-on company.

P/s: the head of finance is a cha-ya-nun-alif woman.Always everywhere this kind of ethnic.. either govern or not.

-ANOTHER FAN OF WARRIOR 231-

Anonymous said...

Kita anggap macam ni sajalah. Previously, UEM as one of the GLC already gone through this thing. Err... anybody from UEM going to the court? So the same thing also apply here.

...SMDB'ian....

Anonymous said...

"If there was fraud in Sime Darby, will anyone go to court?"

Maybe YES...but no one will have to spend jail time.You know why?? cos in Malaysia these bloody crooks are immune.

Anonymous said...

Sorry brader - S140 of the Companies Act will make any such indemnity void. You can have whatever letter from whomever you want - but it would not struck down as void. Please get a copy pf the Companies Act.

cheerio

Anonymous said...

"If there was fraud in Sime Darby, will anyone go to court?"

Maybe YES...but no one will have to spend jail time.You know why?? cos in Malaysia these bloody crooks are immune.

9:50 AM


I don't agree with the statement above. Anwar Ibrahim DID spend jail time!

Anonymous said...

Did you know, Mr Phoenix is bisexual? Check it out with SB friends.

Cheers.

Mr X

Anonymous said...

Azahar is gay??? wow

Businessman said...

Dude, the acquisition of Ram for 232m includes liabilities (you buy the company). The 500m is only for the assets. Hence, it's only logical for the price of assets to be higher as it excludes the liabilities. Please check your facts.

Businessman said...

Zaib: a demerger would make the company lose its ability to use its balance sheet for cheaper financing which is then flowed to the different businesses. Not a good idea as separately, the cost of funds would be higher.

Managing it can be done with proper structures and leadership. Look at GE, Virgin Group, Usaha Tegas, Kuok Group... all diversified

Anonymous said...

Hello, Businessman . What you say is correct. But why rush into the deal, when Ramunia is a PN 17 company, and will go bankrupct without the cash injection by Sime Darby?

The listing status of Ramunia is also money, its an asset, but you can quantify it in monetarty terms, nor if managed well how the capitalization of Ramunia could be worth atleast RM2 billion today. But Sime blew it, and some people took money to push forward the deal way ahead of its time. Ask Azahar, Ask Shukri, they should know.

As such, Darby could have got it at a cheaper price, and I think Rocky knows about asset and liabilities, thats why he wrote LOCK STOCK AND BARREL.

Businessman, please go for ENGLISH classes and learm defination of L S AND B, before you attempt again to write a comment. What a PRICK

Its me Boss.

Anonymous said...

What happen to Bursa Malaysia and Securities Commission ? Are they just sleeping regulators? What is their function sending letters of queries only ??

ACT NOW TO PROTECT THE INVESTORS...SEND YOUR INVESTIGATION TEAM TO AUDIT THE FINANCIAL STATEMENT....AND SUPPORTING DOCUMENTS....DO SOMETHING...WITH MACC...PITY plantations division have to cover the losses....all because of the merger and crooks from Sime Darbians.

Ex-Regulators

http://jobs1malaysia.blogspot.com

Anonymous said...

Salam, nak tulis English kurang pandai, tulis Bahasa, failed dulu kat school, aku dah pencen ngan blogs semua ni, tapi gatai jari jari hari ini nak type juga. Fraud ke or anything – semua dah hancus!
Siapa salah dah tak membawa apa apa erti lagi. Depa semua kena tangkap atau dibuang keroje, boleh ke dapat balik ganti kerugian itu? Well! go unpunished is also unacceptable. Terlanjur siasat and intend to hukum, tu kerajaan mana yang allowed the merger ? Penjarakan mereka mereka itu. Kerajaan sekarang? Tidak bertindak dengan betul to clean this sh*t, penjarakan mereka juga. Habis? Siapa yang nak memerintah? Panggil mat british datang balik? tak mungkin kot? Kau orang nak pileh aku? Aisye gila bebenau tu! Then reading the blog & comments, tiada satu yang sesuai untuk mengatasi masaalah ini, aku pun tiada idea gak ini! Apa nak buat?

The dark lord penyibuk tumpang lalu