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Saturday 15 May 2010

Perkasa wants all Sime Darby directors to quit

By Stephanie Sta Maria - Free Malaysia Today

KUALA LUMPUR: Perkasa has called for Sime Darby Bhd's entire board of directors to resign after the palm oil giant said it is braced for losses of RM964 million due to problems with projects.

“Perkasa is shocked at the losses suffered by a government-linked company like Sime Darby,” its president Ibrahim Ali said in a press statement today. “I understand that the amount could even reach RM4 billion!”

A company statement released yesterday announced that its president and CEO Ahmad Zubir Mushid “has been asked to take a leave of absence prior to the expiry of his contract on Nov 26, 2010”.

Ibrahim also called for the immediate setting up of an independent special committee to conduct investigations into this “extraordinary losses”.

He said representatives from the Malaysian Anti-Corruption Commission must also sit in the panel.

“This is a matter of great humiliation for the Malays,” he said. “I'm sure the prime minister, like Perkasa, will not be content with only the CEO stepping down.”

Sime Darby expects to report its first ever quarterly loss during its third-quarter results due out on May 27.

One of projects that has significantly contributed to the deficit is the controversial Bakun mega-dam in Borneo.

According to company officials, the project was initially scheduled for completion in September 2007 but was delayed due to various complications. As a result, costs have escalated and, according to Sime Darby management, may hit RM450 million.

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