Sime Darby seeks legal action for cost overruns

KUALA LUMPUR: Sime Darby Bhd will take legal action against certain individuals found culpable over the severe losses suffered by its energies and utilities division totaling RM2.08 billion, said its chairman Tun Musa Hitam.

In a statement on Bursa Malaysia, he said the group was engaging the services of a senior counsel who is in the midst of preparing civil actions to be filed.

The group expects to initiate its legal proceedings before the year-end and its forensic report has named unidentified individuals with prima facie culpability, he told shareholders at the group's AGM on Tuesday, Nov 16.

He said the group had lodged reports with the Securities Commission (SC) and the Malaysian Anti-Corruption Commission (MACC) over the matter, and thus could not divulge the contents of the forensic report on the advice of their legal counsel.

"These two bodies have informed us that they are conducting further investigations," he said.

Sime Darby said the group had declared provisions of RM2.08 billion as at its financial year ended June 30, 2010, over four projects namely the Qatar Petroleum project, Bakun hydroelectric dam project, the Maersk Oil Qatar project and another project that entailed the construction of marine vessels.