SAPURA Resources Bhd is currently seeking legal advice on possible actions against its former managing director Datuk Shahriman Shamsuddin after completing its investigation into potential breaches of the latter’s employment contract.
Without disclosing details of the outcome of its investigation, Sapura Resources in a written reply told FocusM:
“Sapura Resources has completed its internal investigation and has submitted reports to the relevant authorities as legally required.
“We’ve also engaged external legal counsel to advise on potential subsequent actions that may be pursued in the best interest of the Sapura Resources and its stakeholders, thus reaffirming our unwavering commitment to upholding the highest standards of integrity and corporate governance.”
The saga began when the Minority Shareholders Watch Group (MSWG) raised concerns at Sapura Resources’ annual general meeting (AGM) on July 17 last year over a memorandum of understanding (MOU) inked on Dec 5, 2023 between Explorer Group Sdn Bhd and Royal Jet LLC to explore potential collaboration on private flight operations at the Sultan Abdul Aziz Shah Airport.
MSWG was concerned that Shahriman – in addition to his role as the head honcho of Sapura Resources at that time – was also a shareholder and executive director of Explorer Group.
Pointing to Shahriman’s interests and fiduciary duties at Sapura Resources, MSWG had painted a potential conflict of interest scenario since both the group and Explorer Group operate in closely related aviation sectors which could influence corporate decisions and ultimately impact shareholder value.
Subsequently, Sapura Resources announced that Shahriman had been placed on a leave of absence effective Sept 11 last year pending on-going investigations. However, the group did not disclose the specific reasons for the investigation at that time.
Interestingly, while on ‘garden leave, Shahriman filed a petition with the High Court on Sept 23 last year to wind up the family’s investment vehicle, Sapura Holdings Sdn Bhd which owns a 51.1% stake in Sapura Resources and other assets.
On Oct 10 last year, Sapura Resources announced that it had issued show cause letters to Shahriman while disclosing that investigative proceedings were being conducted in respect of matters relating to his employment contract.
However, before the investigation concluded, Shahriman resigned as Sapura Resources’ MD prior to relinquishing his position as director on Oct 29 last year.
When queried about the status of the internal probe immediately following Shahriman’s resignation, Sapura Resources had informed FocusM that the investigations were still on-going.
Its CEO Reza Abdul Rahim further stressed that the group “is currently very much focused on turning around its business, restoring profitability, capitalising on existing opportunities and actively pursuing and developing new business prospects”.
“We are cautiously optimistic that the disciplined execution of our strategies will put the company on a path to profitability and pave the way for future growth,” he added.
At the shareholder level, in spite of the disruptions from Shahriman’s winding-up petition and his alleged breaches at Sapura Resources, Sapura Holdings is also pushing forward in developing its business.
Recently, Sapura Holdings’ subsidiary, Sapura Secured Technologies, announced a joint venture with Aselsan A.S. from Turkiye to develop advanced technology solutions that meet Malaysia’s security needs.
The partnership aims to introduce and market innovative solutions in the national market, strengthening their position in the global defence and public security industry. This development may positively impact Sapura Resources, especially its aviation division.
At last Friday’s (Feb 21) close, Sapura Resources was traded down 0.5 sen or 2.72% to 21.5 sen with 10,000 shares traded, thus valuing the company at RM56 mil. – Feb 24, 2025
