Tuesday, 10 February 2015

Tanjung Offshore: possible misconduct (2)

There has been a few new developments in this case. Tanjung Offshore has submitted the reports (containing the findings of the independent commission) both to the Securities Commission and to Bursa Malaysia. We need to wait what their actions will be, if any.

According to recent newspaper articles (like this one in The Star) Tan Sri Tan Kean Soon "has broken his silence over certain allegations at Tanjung Offshore Bhd. In refuting what has appeared in the media in the last fortnight, Tan said he would soon tell his side of the story so that shareholders would know the full picture."

That is rather vague, and we have to wait for more details. The only "meat" in the article is this part:

"Tan said he had questioned a number of deals that were announced and then aborted, especially those which incurred hefty and wasteful advisory fees without bringing any benefit to the company. He was also not pleased at the questionable manner in which the company acquired an oil and gas service provider as well as the acquisition of a residential property abroad which was not aligned to the core businesses of Tanjung Offshore."

I find the property acquisition by an Oil&Gas player also rather odd, but the question is did Tan openly speak out against the property deal and the high advisory fees? In the announcements made to Bursa I can't find indication whatsoever that the board of directors did not agree on these matters. If Tan opposed these deals, surely he should have made his opinion and reasoning known to the other shareholders?

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