Tuesday, 24 March 2015

Tanjung Offshore: more twists and turns

Tanjung Offshore's storyline seems to have more twists and turns than a whole season of Game of Thrones.

Even Transparency International Malaysia (TI-M) entered the fray, according to this news article.

Although Tanjung Offshore is a very interesting case to follow from a corporate governance point of view, TI-M might just want to focus on the big ticket items like 1MDB, which might be literally one thousand times bigger than Tanjung Offshore: the issues in the former company seems to run in the billions, the issues in the latter company in the millions.

Yesterday Tanjung Offshore made fourteen announcements in one go:

The Malaysian Insider wrote about the issues, some snippets:

According to a filing with Bursa Malaysia today, the withdrawal notice from the three parties – Tan Sri Tan Kean Soon, Datuk Dr Nik Norzrul Thani N. Hassan Thani and Datin Norhafizah Mohd Nordin – was received after the uplifting of suspension of three officers – Tan, Muhammad Sabri Ab Ghani and Harzani Azmi with immediate effect.

Interestingly, the board of directors has also redesignated Tan as its new executive director, replacing Muhammad Sabri who has resigned from the board today. Tan was previously a non-executive director.

Apart from Muhammad Sabri, who resigned for "personal reasons", George William Warren Jr has also resigned as independent non-executive director “to explore other opportunities elsewhere".

In a press statement, Tanjung said the board welcomed Datuk Mohd Hafarizam Harun as its chairman, after appointing him an independent non-executive director today. Three others were also appointed as independent non-executive directors, namely Nik Norzrul Thani, Datuk Maheran Mohd Salleh and Tan Sam Eng.

Meanwhile the Audit Committee, in consultation with Bursa, had on March 20, 2015, appointed Ferrier Hodgson MH Sdn Bhd as a special auditor to review matters highlighted by the Independent Committee (IC).

To recap, Tan had initially planned to remove Warren and two other directors – Datuk Ab Wahab Ibrahim (non-executive director) and Shahrizal Hisham Abdul Halim (independent non-executive director) – in the proposed EGM. Warren, Wahab Ibrahim and Shahrizal Hisham were the members in an IC established by Tanjung’s board of directors on Jan 8 this year.

The reasons given for the resignations ("To explore other opportunities else where." and "Personal reason.") are disappointing given what happened in the past, I had expected some more zest.

I guess that we have to wait for the outcome of the investigations by the special auditor and by the authorities.

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