Sime Darby head told to step aside
UPDATED @ 05:27:25 13-05-2010
By Yow Hong Chieh
May 13, 2010
KUALA LUMPUR, May 13 — Sime Darby Bhd president and group chief Datuk Seri Ahmad Zubir Murshid has been asked to take a leave of absence following concerns about costs overruns from the Bakun dam project.
Sime Darby chairman Tun Musa Hitam told a press conference today that pending the appointment of a new president and group chief executive, Datuk Azhar Hamid, executive vice-president of the plantation division, has been appointed acting group chief executive.
The announcement confirms an earlier report in The Malaysian Insider.
When asked if Ahmad Zubir’s leave of absence amounted to a dismissal, Musa said: “It is up to people to interpret. The fact is that he has left the group as of today.”
As for the possibility that Ahmad Zubir will face criminal charges, Musa said: “It’s still work in progress. We don’t decide. Our advisers will decide after looking through the circumstances.”
Musa added that the problems within the energy and utilities division were not restricted to the Bakun hydroelectric dam project, citing cost overruns for the QP, MOQ and Marine projects.
Sime Darby expects to make a loss of RM964 million in this quarter due to cost overruns from these four projects.
Group CFO Tong Poh Keow said the losses will definitely impact Sime Darby’s numbers for the total financial year but was confident that the company will not book a loss in FY2010.
“For the whole year cumulative results... we would expect it will positive,” she said, noting the group’s RM1.1 billion profit in the first half of FY2010.
She added that Sime Darby will release its Q3 results on May 27.
The cost overruns were discovered by a board work group formed in October 2009 to “assess the corporate governance and performance” of Sime Darby’s energy and utilities division.
The task force consists of Datuk Seri Panglima Andrew Sheng, Tan Sri Wan Mohd Zahid Mohd Noordin and Datin Paduka Zaitoon Othman, and is advised by independent lawyers and accountants.
Trading on Sime Darby was suspended today from 9am to 5pm due to a “material announcement”. This followed a fall in share prices from RM8.76 to RM8.65 after a report on the Bakun dam cost overruns was published in The Edge on May 5.
UPDATED @ 05:27:25 13-05-2010
By Yow Hong Chieh
May 13, 2010
KUALA LUMPUR, May 13 — Sime Darby Bhd president and group chief Datuk Seri Ahmad Zubir Murshid has been asked to take a leave of absence following concerns about costs overruns from the Bakun dam project.
Sime Darby chairman Tun Musa Hitam told a press conference today that pending the appointment of a new president and group chief executive, Datuk Azhar Hamid, executive vice-president of the plantation division, has been appointed acting group chief executive.
The announcement confirms an earlier report in The Malaysian Insider.
When asked if Ahmad Zubir’s leave of absence amounted to a dismissal, Musa said: “It is up to people to interpret. The fact is that he has left the group as of today.”
As for the possibility that Ahmad Zubir will face criminal charges, Musa said: “It’s still work in progress. We don’t decide. Our advisers will decide after looking through the circumstances.”
Musa added that the problems within the energy and utilities division were not restricted to the Bakun hydroelectric dam project, citing cost overruns for the QP, MOQ and Marine projects.
Sime Darby expects to make a loss of RM964 million in this quarter due to cost overruns from these four projects.
Group CFO Tong Poh Keow said the losses will definitely impact Sime Darby’s numbers for the total financial year but was confident that the company will not book a loss in FY2010.
“For the whole year cumulative results... we would expect it will positive,” she said, noting the group’s RM1.1 billion profit in the first half of FY2010.
She added that Sime Darby will release its Q3 results on May 27.
The cost overruns were discovered by a board work group formed in October 2009 to “assess the corporate governance and performance” of Sime Darby’s energy and utilities division.
The task force consists of Datuk Seri Panglima Andrew Sheng, Tan Sri Wan Mohd Zahid Mohd Noordin and Datin Paduka Zaitoon Othman, and is advised by independent lawyers and accountants.
Trading on Sime Darby was suspended today from 9am to 5pm due to a “material announcement”. This followed a fall in share prices from RM8.76 to RM8.65 after a report on the Bakun dam cost overruns was published in The Edge on May 5.
Click HERE for the link..
Sime Darby halts share trading for today
UPDATED @ 09:29:30 13-05-2010
May 13, 2010
KUALA LUMPUR, May 13 — Sime Darby has sought a suspension of share trading for today because it plans a “material announcement”, according to a one-paragraph statement posted on the Bursa Malaysia website.
Sime’s announcement is most likely related to its probe on the energy and utilities division and the provisions it may make for cost overruns for the Bakun dam project, said analysts.
Sime said last week it had set up a task force to investigate the division to address “the tough and challenging situation it is currently facing.”
Sime reportedly incurred more than RM1 billion in cost overruns for carrying out civil works on the RM8 billion Bakun hydroelectric dam in Sarawak state on Borneo island.
The Edge newspaper said it had put in claims of RM700 million against the government for civil engineering works at the dam.
Sime Darby officials were not immediately available to comment. The stock closed yesterday at RM8.65 and investment bank CIMB cut its rating on the stock to neutral as a result of the cost overrun reports. — Reuters
UPDATED @ 09:29:30 13-05-2010
May 13, 2010
KUALA LUMPUR, May 13 — Sime Darby has sought a suspension of share trading for today because it plans a “material announcement”, according to a one-paragraph statement posted on the Bursa Malaysia website.
Sime’s announcement is most likely related to its probe on the energy and utilities division and the provisions it may make for cost overruns for the Bakun dam project, said analysts.
Sime said last week it had set up a task force to investigate the division to address “the tough and challenging situation it is currently facing.”
Sime reportedly incurred more than RM1 billion in cost overruns for carrying out civil works on the RM8 billion Bakun hydroelectric dam in Sarawak state on Borneo island.
The Edge newspaper said it had put in claims of RM700 million against the government for civil engineering works at the dam.
Sime Darby officials were not immediately available to comment. The stock closed yesterday at RM8.65 and investment bank CIMB cut its rating on the stock to neutral as a result of the cost overrun reports. — Reuters
Click HERE for the link..
Najib vows no cover-up of Sime Darby’s losses
By Lee Wei Lian
May 13, 2010
PUTRAJAYA, May 13 — Prime Minister Datuk Seri Najib Razak promised today that there will be no cover-up of any weaknesses or losses at top conglomerate Sime Darby Bhd.
This comes as Sime Darby president and group chief Datuk Seri Ahmad Zubir Murshid was asked to take a leave of absence following concerns about costs overruns from the Bakun dam project.
“We have no intention to cover up any such weaknesses or losses,” the prime minister told a press conference today. “This is part of good governance.”
Najib (picture), who is also Finance Minister, said the decision taken at Sime Darby shows that the government-linked-company (GLC) is decisive and transparent.
“In principle, all those running GLCs are responsible for the performance of their respective companies,” he said.
Sime Darby chairman Tun Musa Hitam said today the problems within the GLC’s energy and utilities division were not restricted to the Bakun hydroelectric dam project and cited cost overruns at the QP, MOQ and Marine projects.
Sime Darby expects to make a loss of RM964 million in this quarter due to cost overruns from these four projects.
The cost overruns were discovered by a board work group formed in October 2009 to “assess the corporate governance and performance” of Sime Darby’s energy and utilities division.
The taskforce members consist of Datuk Seri Panglima Andrew Sheng, who is also a member of the National Economic Advisory Council, Tan Sri Wan Mohd Zahid Mohd Noordin and Datin Paduka Zaitoon Othman.
Trading of Sime Darby shares was suspended today pending the announcement of Ahmad Zubir’s departure.
Sime Darby’s shares fell from RM8.76 to RM8.65 after news reports of the Bakun dam cost overruns emerged on May 5.
By Lee Wei Lian
May 13, 2010
PUTRAJAYA, May 13 — Prime Minister Datuk Seri Najib Razak promised today that there will be no cover-up of any weaknesses or losses at top conglomerate Sime Darby Bhd.
This comes as Sime Darby president and group chief Datuk Seri Ahmad Zubir Murshid was asked to take a leave of absence following concerns about costs overruns from the Bakun dam project.
“We have no intention to cover up any such weaknesses or losses,” the prime minister told a press conference today. “This is part of good governance.”
Najib (picture), who is also Finance Minister, said the decision taken at Sime Darby shows that the government-linked-company (GLC) is decisive and transparent.
“In principle, all those running GLCs are responsible for the performance of their respective companies,” he said.
Sime Darby chairman Tun Musa Hitam said today the problems within the GLC’s energy and utilities division were not restricted to the Bakun hydroelectric dam project and cited cost overruns at the QP, MOQ and Marine projects.
Sime Darby expects to make a loss of RM964 million in this quarter due to cost overruns from these four projects.
The cost overruns were discovered by a board work group formed in October 2009 to “assess the corporate governance and performance” of Sime Darby’s energy and utilities division.
The taskforce members consist of Datuk Seri Panglima Andrew Sheng, who is also a member of the National Economic Advisory Council, Tan Sri Wan Mohd Zahid Mohd Noordin and Datin Paduka Zaitoon Othman.
Trading of Sime Darby shares was suspended today pending the announcement of Ahmad Zubir’s departure.
Sime Darby’s shares fell from RM8.76 to RM8.65 after news reports of the Bakun dam cost overruns emerged on May 5.
Click HERE for the link..
Changes at the top in Sime Darby?
May 13, 2010
KUALA LUMPUR, May 13 — Corporate giant Sime Darby Berhad is likely to announce management changes this afternoon, which could see group chief executive officer Datuk Seri Ahmad Zubir Murshid take a leave of absence ahead of his contract expiry in October.
Sime Darby chairman Tun Musa Hitam has called for a press conference at 2.30pm at the Sime Darby Convention Centre in Bukit Kiara.
“There are changes at the top,” a source told The Malaysian Insider.
It is understood that Zubir (right), who is also the GLC’s president, had indicated earlier this year that he did not intend to extend his contract beyond October despite being urged to do so by Musa and the board.
Sources also said that Datuk Azhar Abdul Hamid (left), executive vice-president in the plantations and agri-business division, could be one of the frontrunners to manage the group in Ahmad Zubir’s absence.
The plantation-to-power conglomerate had earlier this morning sought a suspension of share trading for today because it plans a “material announcement”, according to a one-paragraph statement posted on the Bursa Malaysia website.
Sime’s announcement is most likely related to its probe on the energy and utilities division, and the provisions it may make for cost overruns for the Bakun dam project, said analysts.
Sime said last week it had set up a task force to investigate the division to address “the tough and challenging situation it is currently facing.”
The conglomerate reportedly incurred more than RM1 billion in cost overruns for carrying out civil works on the RM8 billion Bakun hydroelectric dam in Sarawak.
The Edge newspaper said it had put in claims of RM700 million against the government for civil engineering works at the dam.
Sime Darby officials were not immediately available to comment. The stock closed yesterday at RM8.65 and investment bank CIMB cut its rating on the stock to neutral as a result of the cost overrun reports.
May 13, 2010
KUALA LUMPUR, May 13 — Corporate giant Sime Darby Berhad is likely to announce management changes this afternoon, which could see group chief executive officer Datuk Seri Ahmad Zubir Murshid take a leave of absence ahead of his contract expiry in October.
Sime Darby chairman Tun Musa Hitam has called for a press conference at 2.30pm at the Sime Darby Convention Centre in Bukit Kiara.
“There are changes at the top,” a source told The Malaysian Insider.
It is understood that Zubir (right), who is also the GLC’s president, had indicated earlier this year that he did not intend to extend his contract beyond October despite being urged to do so by Musa and the board.
Sources also said that Datuk Azhar Abdul Hamid (left), executive vice-president in the plantations and agri-business division, could be one of the frontrunners to manage the group in Ahmad Zubir’s absence.
The plantation-to-power conglomerate had earlier this morning sought a suspension of share trading for today because it plans a “material announcement”, according to a one-paragraph statement posted on the Bursa Malaysia website.
Sime’s announcement is most likely related to its probe on the energy and utilities division, and the provisions it may make for cost overruns for the Bakun dam project, said analysts.
Sime said last week it had set up a task force to investigate the division to address “the tough and challenging situation it is currently facing.”
The conglomerate reportedly incurred more than RM1 billion in cost overruns for carrying out civil works on the RM8 billion Bakun hydroelectric dam in Sarawak.
The Edge newspaper said it had put in claims of RM700 million against the government for civil engineering works at the dam.
Sime Darby officials were not immediately available to comment. The stock closed yesterday at RM8.65 and investment bank CIMB cut its rating on the stock to neutral as a result of the cost overrun reports.
Click HERE for the link..
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