KUALA LUMPUR (Dec 2): Property developer Encorp Bhd (KL:ENCORP) announced on Monday that it has removed its group chief executive officer, Hazurin Harun, with immediate effect following an internal investigation by the board of directors.
Hazurin, who was suspended from the group CEO role in August, was charged by the Malaysian Anti-Corruption Commission (MACC) in mid-November with two counts of criminal breach of trust. He has, however, denied the charges and claimed trial.
Encorp is 67.13%-owned by Felda Investment Corp Sdn Bhd (FIC), which is in turn wholly-owned by Felda.
Hazurin, 54, was appointed Encorp's group CEO in February 2021. He previously served as operations manager at Pengurusan Danaharta Nasional Bhd, financial controller at Pembinaan BLT Sdn Bhd (an entity owned by the Minister of Finance Inc) and chief financial officer at Symphony Life Bhd (KL:SYMLIFE).
In August, the MACC confirmed the arrest of three individuals, including a group CEO, on suspicion of misappropriating RM1.5 million in funds belonging to a publicly listed company. Two suspects, a man and a woman aged between 40 and 50, were remanded for four days until Aug 12.
According to an MACC source, the suspects were being investigated for irregularities in construction and mining projects valued at about RM80 million. Preliminary findings pointed to their involvement in establishing an unauthorised company for a RM258 million project and embezzling approximately RM3 million in property rental funds.
Encorp has been loss-making since the financial year ended Dec 31, 2017 (FY2017). For the first nine months of FY2024, the company, whose core businesses include property development, property investment and construction, reported a net loss of RM1.74 million on revenue of RM78.54 million.
Shares of Encorp last traded at 20 sen on Friday, giving the company a market capitalisation of RM63.3 million.