Friday 26 Apr 2024
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This article first appeared in The Edge Financial Daily, on November 18, 2016.

 

KUALA LUMPUR: A parliamentarian has called for investigation to be extended to Lembaga Tabung Haji after it was reported that the former chief executive officer (CEO) of the pilgrimage fund’s 29.81%-owned unit TH Heavy Engineering Bhd is under probe by the Malaysian Anti-Corruption Commission (MACC).

Mohd Rafizi Ramli (pic) (Pandan-PKR) said the MACC should investigate why Tabung Haji continued to pump money into TH Heavy even after the offshore fabrication and marine services company was deep in the red.

“An investigation should be done on why Tabung Haji, which has only a 30% stake in TH Heavy, continued to pour in depositor funds into the loss-making [associate].

“Hopefully, there will be some justice in the seven, eight years saga of TH Heavy,” he told a press conference at the Parliament lobby yesterday.

Mohd Rafizi questioned why Tabung Haji’s senior management, including its board of directors and investment panel, committed to invest in TH Heavy when the company was already in financial distress when it was known as Ramunia Holdings Bhd previously.

Ramunia was suspended from Bursa Malaysia in 2010 after it was classified as a Practice Note 17 company.

On Tuesday, TH Heavy pledged to extend its fullest cooperation to the MACC in the agency’s probe into the company’s previous CEO Datuk Nor Badli Munawir Mohamad Alias Lafti.

“The company is committed to supporting any effort to enhance transparency, accountability, integrity and ethical business practices as key features of its good corporate governance,” TH Heavy said in a statement.

Nor Badli, who was appointed as its managing director and CEO in June 2010, resigned in June 2015.

It was reported on Monday that a former CEO of a government-linked company was arrested on suspicion of being involved in alleged corruption and misappropriation of projects worth RM50 million.

The reports said the MACC had frozen several bank accounts amounting to RM39.3 million belonging to the suspect and his family members. It was also reported that the man was believed to have awarded millions of ringgit worth of contracts to multiple companies.

It is learnt that the activities occurred during his five-year tenure as the CEO of the company since 2010.

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