Bursa reprimands Ahmad Zaki Resources over delayed disclosure of winding-up petitions

PETALING JAYA (Sept 25): Bursa Malaysia Securities Bhd has publicly reprimanded Ahmad Zaki Resources Bhd (AZRB) for failing to immediately announce four winding-up petitions involving claims totalling about RM9.41 million against the construction group and its wholly-owned subsidiaries.

The stock exchange said on Friday (Sept 25) that AZRB had breached Paragraph 9.19(19)(a)(i) of the Main Market Listing Requirements after delays of about 10 to 50 days in announcing the petitions.

Three of the petitions were filed by creditors against AZRB's wholly-owned subsidiary Ahmad Zaki Sdn Bhd (AZSB), while another was filed by AmBank Islamic Sdn Bhd against AZRB and its wholly-owned subsidiary AZSB Machineries Sdn Bhd.

The longest delay involved a petition by Pathfinder M & E Sdn Bhd over an outstanding sum of RM2.66 million. AZRB received the petition on April 1 but only announced it on June 16, about 50 days later.

A RM5.01 million petition by BBR Construction Systems (M) Sdn Bhd was received on May 6 and announced on May 26, representing a delay of about 14 days.

Meanwhile, a RM1.18 million petition by Qimako Engineering & Construction Sdn Bhd was received on April 24 and announced on May 14, about 13 days later.

The fourth petition, filed by AmBank Islamic over RM558,844, was received on June 22 and announced on July 6, about 10 days later.

Bursa said AZRB had “persistently failed” to make immediate announcements of the petitions, adding that the disclosures were only made after the exchange detected the matters and engaged with the company.

AZRB had explained that it and its subsidiary were in discussions and negotiations with the respective creditors to reach amicable settlements, and that management believed the petitions were likely to be resolved.

However, Bursa said the Main Market Listing Requirements require a listed issuer to immediately announce the presentation of a winding-up petition against itself or its subsidiaries, regardless of whether negotiations with the petitioner to reach a settlement are ongoing.

Bursa said the immediate disclosure requirement is fundamental to enabling investors to make informed investment decisions concerning a listed issuer's business and financial condition.

It added that the repeated delays displayed disregard for the listing requirements and reflected poor governance at AZRB.

Bursa said it did not find that any of AZRB's directors had caused or permitted the breach. Nevertheless, it reminded directors of their duty to maintain appropriate standards of responsibility and accountability in ensuring compliance with the listing requirements.

The directors on AZRB's board during the relevant period were Datuk Seri Wan Zakariah Wan Muda, Datuk W Zulkifli W Muda, Datuk Roslan Jaffar, Tan Sri Lau Yin Pin @ Lau Yen Beng, Datuk Wan Mohd Hilmi Wan Kamal and Lee Chee Khoon.

Also on the board were Datuk Che Noor Azeman Yusoff, who resigned on May 31, and Tan Sri Dr Madinah Mohamad, who resigned on Sept 9.

Bursa said it had reminded AZRB and its board of their responsibility to maintain appropriate standards of corporate responsibility and accountability to shareholders and the investing public.

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