KUALA LUMPUR (May 19): Sarawak Cable Bhd (KL:SCABLE) has denied a claim that its major shareholder, Datuk Seri Mahmud Abu Bekir Taib, was unaware of the board’s decision to sue the appointed liquidators of its subsidiary, Leader Cable Industry Bhd (LCIB), for alleged negligence in handling the sale of assets.
Abu Bekir, the second son of the late Tun Abdul Taib Mahmud — the long-serving Sarawak chief minister and governor — also currently sits on Sarawak Cable’s board.
In a filing to Bursa Malaysia on Monday, Sarawak Cable said “the board has deliberated the matter and it was duly recorded” before the announcement.
“The meeting was also recorded accordingly and witnessed by those present,” the cable manufacturer, which is currently under interim judicial management, said.
Last week, The Edge reported that a lawyer representing Abu Bekir had sent an email to LCIB’s court-appointed liquidators, distancing him from the board’s legal action and stating: “Our client was neither aware of the decision to commence legal proceedings nor does he support the same.”
This came after Sarawak Cable announced earlier this month that its board had informed LCIB’s liquidators — Khoo Siew Kiat and Goh Hua Yang of Deloitte Restructuring Services PLT — of plans to initiate legal action, alleging wilful negligence and misconduct in the handling of LCIB’s asset disposals.
The email, which was sighted by The Edge, further stated: “Although our client is a major shareholder, his options are limited following the appointment of the interim judicial manager. In this regard, our client has applied to intervene in the judicial management proceedings with a view to opposing the application.”
The lawyer also alleged that the board is being influenced by individuals connected to UK-based Serendib Capital Ltd.
Serendib, initially seen as a white knight for the financially distressed Sarawak Cable, is now suing the company, Abu Bekir, and six other directors for allegedly conspiring to harm the company.
Notably, Abu Bekir has applied to intervene in the court’s decision to place Sarawak Cable under interim judicial management, following an application by legal firm Krish Maniam & Co, which is seeking payment for outstanding legal fees.
In an affidavit sighted by The Edge, he claims that Krish Maniam still has “delusional hope” that Serendib can rescue the company. His application is scheduled to be heard on June 20, 2025.
In its latest filing, Sarawak Cable described the email from Abu Bekir’s lawyer as “untrue” and accused the lawyer of interfering in the company’s internal affairs.
Shares in Sarawak Cable closed one sen or 10.5% lower at 8.5 sen on Monday, giving the company a market capitalisation of RM33.9 million.
Sarawak Cable fell into PN17 status in September 2022 after its external auditors flagged material uncertainty over its ability to continue as a going concern. The company has appointed Malacca Securities Sdn Bhd as its principal adviser to formulate a regularisation plan, which has yet to be submitted to Bursa Malaysia.