NWP group CEO suspended as group probes potential breach of fiduciary duty

KUALA LUMPUR (Feb 11): NWP Holdings Bhd’s group chief executive officer has been suspended from his duties with immediate effect, as the group investigates a potential breach of fiduciary duty in the past transactions involving a subsidiary of the group.

However, the name of the individual was not revealed in its stock exchange filing on Sunday, while the group had announced on Jan 21 that its then CEO, 46-year-old Datuk Seri Kee Soon Ling had retired. No replacements have been announced since.

The suspension, which will be in effect until further notice, is to facilitate the independent investigation about “an alleged potential misconduct(s)/breach of fiduciary duty(ies) on certain past significant transactions under NWP Builder Sdn Bhd, a subsidiary of NWP”.

“During the investigation proceeding period, all the executive power accorded to [the] group chief executive officer will be suspended until further notice,” NWP said, adding further announcements shall be made in the event of material developments on the said matter.

Sunday’s development came after NWP, together with NWP Builder, initiated legal action last June against their former executive director Datuk Zhang Li, to seek a declaration that she had breached her duty of loyalty and fidelity to the two entities in several business transactions. 

Zhang was ED of NWP Builder from May 6, 2016 to Feb 22, 2018, and that of NWP from May 6, 2016 to Feb 12, 2018. 

In the case of NWP Builder, the breaches were related to two agreements that NWP Builder inked with Listari Marina (MM2H) Sdn Bhd (LM) in 2016 and 2017, to take over the construction of a nine-storey block comprising 160 units of services suites called OneLe Tower in Melaka.

As for NWP, the breaches were linked to a turnkey construction heads of agreement (HoA) with M2B World (M) Sdn Bhd, which NWP claimed lapsed because Zhang had been negligent or failed to bring about a definitive agreement within the stipulated deadline.

NWP also alleged that Zhang had caused the group to pay herself and other directors RM877,000 as directors’ fees without shareholders’ approval from Aug 1, 2016 to Nov 27, 2017. 

Under the lawsuit, NWP and NWP Builder also wanted her to pay for damages due to the various losses they suffered, together with interests and costs.

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