Sunday 14 Jul 2024
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KUALA LUMPUR (April 18): Bumi Armada Bhd announced that the group and its subsidiary Bumi Armada Navigation Sdn Bhd have been named in prosecutions initiated by the Indian Central Bureau of Investigation (CBI) and the Indian Enforcement Directorate (ED) with the Trial Court at Rouse Avenue in New Delhi, India.

In a bourse filing on Monday (April 18), Bumi Armada said the group and Bumi Armada Navigation at a hearing on Monday respectively entered appearance in the proceedings to demonstrate their willingness to fully cooperate with the CBI and the ED and to aid and assist them and the Court in these ongoing proceedings.

"Bumi Armada does not currently expect these proceedings to have any material impact on the group's ability to carry on its business," it said, adding that updates will be provided from time to time on any further material developments on this matter.

The respective prosecutions have been initiated against former Indian finance minister Palaniappan Chidambaram, his son Karti Chidambaram, Chess Management Services Pvt Ltd — a company allegedly controlled by Karti — and several other corporations and individuals based in India and Malaysia, including Bumi Armada and Bumi Armada Navigation.

"The prosecution alleges, inter alia, that in 2006, Palaniappan illegally granted foreign investment promotion board approval for an indirect investment into Aircel Ltd by Maxis Communications Bhd, and that as quid pro quo, Bumi Armada and Bumi Armada Navigation had, between 2007 and 2009, allegedly remitted approximately US$92,000 and US$12,000 respectively to Chess, which were allegedly illegal gratification passed on to Palaniappan.

"Payments of those sums to Chess were for information technology solutions software and server hosting services provided to Bumi Armada and Bumi Armada Navigation respectively during such period," said Bumi Armada.

Bumi Armada shares closed unchanged at 44.5 sen on Monday, bringing it a market capitalisation of RM2.6 billion.

Edited ByKang Siew Li
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