KUALA LUMPUR (June 28): Cahya Mata Sarawak Bhd (CMSB), which has hired KPMG Management & Risk Consulting Sdn Bhd to conduct an independent review of the financial management of certain investments and contracts, has reshuffled the members of its audit committee as well as nomination and remuneration committee.
Its independent non-executive director Jeyabalan SK Parasingam has been appointed the chairman of the Sarawak-based conglomerate’s audit committee as well as nomination and remuneration committee, according to a filing with Bursa Malaysia.
Other members in the new audit committee include non-independent non-executive director Umang Nangku Jabu and two independent non-executive directors, namely Datuk Kamarudin Zakaria and Dr Khor Jaw Huei.
Meanwhile, other members of the nomination and remuneration committee include deputy group chairman Datuk Sri Mahmud Abu Bekir Taib and two independent non-executive directors, namely Tan Sri Abdul Rashid Abdul Manaf and Khor.
The group also highlighted that there were no changes to the composition of the board’s group risk committee.
Currently, the group’s risk committee is headed by Kamarudin, and other members include group managing director Datuk Isaac Lugun and Khor.
Notably, the revision of committee members comes as the spotlight was cast on the group amid allegations of conflict of interest in terms of awarding contracts and possible financial mismanagement among its top executives.
On April 22, Abu Bekir was seeking leave of absence from all his positions in the group as CMSB launched an investigation into allegations of conflict of interest involving him and former chief information officer Karl Vink @ Khalid Abdullah.
Subsequently, the company on May 5 announced that it had suspended group chief financial officer (CFO) Syed Hizam Alsagoff for 30 days to facilitate investigations into allegations of possible financial mismanagement in relation to the company's investments and operations.
On the following day, the Sarawak conglomerate announced the board’s request for Abu Bekir to stay after it concluded that the allegation of possible conflict of interest involving Abu Bekir and Karl Vink @ Khalid Abdullah was “without basis”.
“While the board is grateful for his gesture of seeking leave of absence, we have reviewed the situation and resolved that there is no need for him to do so,” the company said in a statement then.
Earlier this month, CMSB resorted to appoint KPMG as the independent consultant to review the financial management of certain investments and contracts.
In an interesting twist, non-independent and non-executive director Datuk Seri Yam Kong Choy and independent and non-executive director Ho Heng Chuan have resigned from their positions. Both cited “other personal commitments” as the reason for them to relinquish their positions.
At the time of writing, CMSB's share price was up two sen at RM1.12, valuing the conglomerate at RM1.2 billion. Even so, the stock has been on a decline since the news broke on the allegations among its top executives.
The counter has plunged 48% year-to-date (YTD).