KUALA LUMPUR (Oct 10): Sapura Resources Bhd (KL:SAPRES) said on Thursday that it has issued show cause letters to its managing director Datuk Shahriman Shamsuddin and appointed a new acting MD.
Shariman "remains on leave of absence", the company said in a filing with Bursa Malaysia. This confirms a report by The Edge on Wednesday that Shahriman's leave has been extended.
The filing did not reveal the duration of Shahriman's leave of absence, but The Edge, citing sources, said the leave has been extended for another month.
"Pursuant to the investigative proceedings conducted by the company in respect of matters relating to Datuk Shahriman's contract of employment, show cause letters have been issued to Datuk Shahriman," said Sapura Resources. "The investigative proceeding is still underway, and no determination has been made."
The company said it has redesignated its non-independent non-executive director Reza Abdul Rahim as executive director and also appointed him as acting MD, effective Thursday.
Reza, it said, will temporarily assume the duties, functions, powers, and authorities of the MD. Meanwhile, chief corporate officer Mai Eliza Mior Mohamad Zubir will cease to be the officer-in-charge of the company.
Shahriman, who holds an indirect 51.47% in Sapura Resources together with his brother Tan Sri Shahril Shamsudin, has been put on garden leave since Sept 11.
Shahriman has been serving as MD of Sapura Resources for 17 years since March 2007. According to filings with the Companies Commission of Malaysia, Shahriman has been a shareholder of Sapura Resources since its shares were floated as Uniphone Telecommunications Bhd in the late 1990s.
The Edge previously reported that Shahriman's leave of absence could be either because of the hiring of an unqualified person at Sapura Resources, or potential conflict of interest arising from Shahriman's interest in aviation company Explorer Group Sdn Bhd, in which he has been a director since 2019.
The latest edition of The Edge Malaysia weekly also reported that Shahriman has filed a petition with the High Court on Sept 23 to wind up the family's investment vehicle Sapura Holdings Sdn Bhd, which owns a 51.1% stake in Sapura Resources and other assets.
Sapura Resources’ share price was last traded at 28 sen on Wednesday, giving the company a market capitalisation of RM72.6 million.