KUALA LUMPUR (April 14): MMAG Holdings Bhd, which in February suspended two directors at its 80%-owned air cargo logistics unit M Jets International Sdn Bhd (MJets) pending the outcome of an investigation by the Malaysian Anti-Corruption Commission (MACC), has commenced a legal suit against the now former directors for alleged breach of fiduciary duties.

In the suit filed by MJets against the duo — Gunasekar Mariappan and Philip Phang Kin Ming — the group is seeking special damages of RM23.17 million, judgement interest at 5% per annum from the date of judgement until full settlement, and any other relief the court deems fit.

It is also seeking costs on a full indemnity basis against the directors, but did not elaborate.

The transportation and logistics group announced on Feb 21 that the duo had been suspended following a raid at MJets' office on Feb 13, based on a report the MACC had received. MJet's bank accounts had also been frozen.

At the time, MMAG said the suspension was to protect itself and MJet's business, and to ensure business continuity. MMAG also claimed then that MJets had been fully managed by the duo, with the group having limited access to it.

Then on March 6, MMAG said MJets had been slapped with a lawsuit over the alleged non-payment of monthly repayment instalments. The suit was filed by Comone International Logistics Co Ltd, which claimed that MJets did not pay the instalments for the cancellation of a proposed joint venture agreed to by MJet's previous management, before it became a subsidiary of MMAG.

MMAG bought the stake in MJets for RM21.36 million from JT Aerotech Solutions Sdn Bhd in November 2020 to have its own air cargo arm, to complete its supply chain of first-, middle- and last-mile delivery. At that time, MJets was a provider of airline charter flights.

Shares in MMAG closed unchanged at 2 sen, giving the company a market capitalisation of RM48.45 million.