KUALA LUMPUR (March 14): Cahya Mata Sarawak Bhd (CMSB) has appointed Mukhnizam Mahmud as the group's acting chief financial officer (CFO), effective Tuesday (March 15). 

Mukhnizam, 56, has more than 30 years of experience with companies in Malaysia, Singapore and Indonesia in accounting/finance and general management. 

“He is a Certified Practising Accountant and his last position was as group chief financial officer, Scomi Group Bhd,” said CMS in a filing with Bursa Malaysia on Monday (March 14). 

On Aug 30, 2021, CMSB announced that a legal investigation had been launched against the group's then-CFO, Syed Hizam Alsagoff, following a review of the financial management of certain investments and contracts in the past. 

Syed Hizam had been suspended from duty since May to facilitate the investigation. 

Following this, his contract as group CFO ended on Aug 31 last year. In the interim, general manager of group finance Tan Mei Fung acted as head of finance, according to CMS. 

The company then appointed KPMG Management & Risk Consulting Sdn Bhd (KPMG MRC) as an independent consultant for the investigation. 

On Nov 24, CMSB revealed key findings by the firm in relation to its review on certain projects in associates, subsidiaries and joint ventures of the group from 2011 to 2020, such as gaps in the contract management process which contributed to a project’s losses.

Moreover, there was a lack of oversight on hedging transactions by the board of an associate company for a specific project, which led to losses caused by adverse currency exchange movements.

KPMG MRC also highlighted a lack of due diligence and stakeholder management on the joint venture partners’ risks off a project, while the reporting structures by management to the board were not followed in a project.

The realised losses incurred had been accounted for in the past financial results of the group.

CMSB had appointed a lawyer to look into the issues raised and advise the group on legal matters, specifically concerning the conduct of senior management at the material time.

The group had also revealed its plans to enhance corporate governance and management accountability, as well as to proactively raise its risk management capability.

CMSB shares settled down one sen or 0.88% at RM1.12 on Monday, giving it a market capitalisation of RM1.2 billion. The counter has declined 51.93% from when it was trading at RM2.33 apiece on March 15, 2021. 

(Mukhnizam Mahmud's designation has been amended for accuracy.)