KUALA LUMPUR (July 8): Cahya Mata Sarawak Bhd (CMS) has appointed Datuk Seri Sulaiman Abdul Rahman Abdul Taib as its new managing director, replacing Datuk Isaac Lugun.

Isaac has been redesignated as CMSB’s non-independent and non-executive director effective today, according to CMS’s bourse filing.

Sulaiman, the brother of CMSB deputy chairman Datuk Seri Mahmud Abu Bekir Taib, was the former deputy minister of tourism from March 2008 until December 2009.

He was appointed to the board of CMSB in 1995 and retired in 2008. During his tenure at CMSB, he held the position of chairman, deputy chairman, acting group chief executive officer and executive director.

CMSB chairman Tan Sri Abdul Rashid has welcomed the appointment of Sulaiman, saying Sulaiman's familiarity with the group and his wide-ranging experience in businesses will be invaluable to the group.

“This transition is due to early retirement of Datuk Isaac, who will continue to be with the group as non-independent, non-executive director,” he said.

Sulaiman, he added, brings with him a wealth of experience in banking, finance, and insurance, having been the executive chairman of RHB Capital Bhd and its group of companies.

CMSB has reshuffled the members of its audit committee, as well as nomination and remuneration committee, just last month. This came amid allegations of conflict of interest in terms of awarding contracts and possible financial mismanagement among its top executives.

CMSB also resorted to appointing KPMG Management & Risk Consulting Sdn Bhd as the independent consultant to review the financial management of certain investments and contracts.

On April 22, Abu Bekir was seeking leave of absence from all his positions in the group, as CMSB launched an investigation into allegations of conflict of interest involving him and former chief information officer Karl Vink @ Khalid Abdullah.

Subsequently, the group on May 5 announced it had suspended group chief financial officer Syed Hizam Alsagoff for 30 days to facilitate investigations into allegations of possible financial mismanagement in relation to the company's investments and operations.

On the following day, the Sarawak conglomerate announced the board’s request for Abu Bekir to stay, after it concluded that the allegation of possible conflict of interest involving Abu Bekir and Karl Vink was “without basis”.

CMSB’s shares settled nine sen or 7.2% lower at RM1.16 today, giving the group a market capitalisation of RM1.25 billion.

The counter has plunged by 46% year-to-date.