The Malaysian Anti Corruption Commission will investigate possible graft at Sime Darby after the palm oil giant said it would post its first ever loss when it announces its third-quarter results tomorrow.
MACC director Mustafar Ali said his officers would probe the extent of the losses and investment decisions at the conglomerate.
"We will indentify the areas that have elements of corruption, misappropriation and abuse of power."Like all cases, we'll deal with this one with urgency, not only because this probably involves billions of ringgit but also the interests of the people," Mustafar added.
Sime Darby said it was braced for losses of RM964 million in its third quarter results expected to be released tomorrow, due to problems with projects such as the controversial Bakun mega-dam in Borneo.
Earlier this month, the conglomerate's board had asked its president and group CEO Ahmad Zubir Murshid to "take leave of absence prior to the expiry of his contract on 26 November 2010".The announcement came after an internal investigation uncovered cost overruns in the energy and utilities division.
The MACC said it will look into that probe as well as other divisions and projects within the company.
First-ever quarterly loss
Company officials said that after posting profits of RM1.11 billion in the first half of the 2010 financial year, the firm was likely to report its first ever quarterly loss.It said the Bakun dam project, in which Sime Engineering holds a 35.7 percent interest, was awarded in September 2002 and initially scheduled for completion in September 2007."However, due to various factors, completion has been delayed and costs have escalated. Management estimates that there could be a potential additional cost attributable to the Group in the financial year 2010 results of 450 million ringgit."The dam, which involves flooding an area the size of Singapore, has attracted fierce criticism due to its impact on the environment and the forced relocation of about 10,000 indigenous people.
Source : AFP
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