Singapore Exchange Regulatory Arm Probes Firm Linked To Mirzan Mahathir

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SBI Offshore, whose executive chairperson is former prime minister Dr Mahathir Mohamad’s son Mirzan Mahathir, is being investigated by SGX RegCo for potential listing rule breaches and potential contravention of directors’ fiduciary duties
This comes after the release of a special audit on the company by RSM Corporate Advisory
SGX RegCo, which is the regulatory arm of the Singapore Exchange, has been monitoring SBI Offshore for years, as reported by The Edge Singapore
SGX RegCo had ordered for the special audit back in December 2018, to probe SBI Offshore’s sale of a factory in China at RMB18 million (RM10.8 million), when the book value of the factory was placed between RMB38 million and RMB40 million
RSM released the special audit on June 12 and concluded that SBI Offshore did go through an “adequate and reasonable” process for the sale of the factory
The price of RMB18 million was the best offer they received during the period, according to the special audit
However, the audit revealed several other issues related to the same factory
When SBI Offshore bought the factory, the acquisition agreement lacked sufficient details of the assets to be acquired, said SGX RegCo
The regulator said there was no valuation conducted before the acquisition agreement was executed to assess and support the purchase consideration of RMB32 million
Before SBI Offshore had entered into the acquisition agreement for the purchase of the factory, the company had incurred RMB8.19 million for the construction and renovation of the factory even though SBI Offshore was intending to acquire a completed factory, reported The Edge
Besides the RMB32 million to purchase the factory, SBI Offshore also spent about RMB15 million in capital expenditure up till 2013 for the same factory
“The factory was eventually underutilised and accumulated losses of more than RMB47 million for the period up to Dec 31, 2017,” said SGX RegCo
Following the findings of the special audit, SGX RegCo will commence detailed investigations into the company
Meanwhile, in an announcement signed in the name of Mirzan, SBI Offshore said it is aware of the potential breaches of laws and/or listing rules
It said the company "will assess the findings and determine the appropriate course of action in the best interests of the group and shareholders.”In a separate report, The Edge Malaysia claimed that Jalil Rasheed (above) is set to depart Permodalan Nasional Bhd (PNB)
Jalil, 38, was the youngest chief executive officer (CEO) at PNB when he was appointed by the Pakatan Harapan government seven months ago
It was reported that PNB’s directors are expected to call a board meeting soon to discuss the matter
Former Bank Negara Malaysia governor Zeti Akhtar Aziz is the PNB chairperson
The business daily quoted sources who said one of the reasons for Jalil’s departure was related to issues surrounding his appointment last October
If he departs, Jalil will also be the CEO with the shortest tenure at PNB, said The Edge. - Mkini

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