Bank Pembangunan's Borcos deal had full internal approvals, court hears

Wednesday 23 Sep 2026

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KUALA LUMPUR (June 25): A Bank Pembangunan Malaysia Bhd (BPMB) official admitted in court on Wednesday that there were full internal approvals and oversight for an acquisition undertaken by the bank’s subsidiary between 2011 and 2013.

BPMB group head for private equity and strategic investments Muhammad Azraini Abdul Hamid agreed that
the acquisition of Syarikat Borcos Shipping Sdn Bhd by BPMB unit Global Maritime Ventures Bhd (GMV) was approved by the boards and management of both GMV and BPMB.

The transaction involved the purchase of irredeemable convertible preference shares (ICPS).

“Yes, the terms were presented to the board,” said Muhammad Azraini when suggested by defence counsel Ahmad Shahrizal Abdul Aziz that the arrangement and terms of the ICPS sale agreement were accepted by the then board of directors and management of both BPMB and GMV.

Muhammad Azraini also acknowledged that the RM50 million payment was disbursed to the joint HSBC account of Borcos' shareholders, Sidqi Ahmad Said Ahmad and Wan Hamimie Wan Ariff, after vetting and endorsement by multiple signatories and GMV’s lawyers.

Ahmad Shahrizal: So just to release the deposit of RM5 million into the joint HSBC account of Mr Sidqi and Ms Wan Hamimie, it has to be confirmed by GMV’s solicitors, Wong & Partners, and signed off by at least seven people in GMV and BPMB, correct?

Muhammad Azraini: Correct.

Ahmad Shahrizal: So it is quite a stringent process, right?

Muhammad Azraini: Yes. [It requires] many signatories.

The court proceeding is pertaining a suit filed in 2021 by GMV and its special purpose vehicle, GMV Borcos Sdn Bhd (now under voluntary liquidation), against the estate of the late Datuk Mohd Zafer Mohd Hashim, BPMB’s former group managing director and GMV director, along with Sidqi, AWH Equity Holdings Sdn Bhd, Wan Hamimie, and legal firm Ram Reza & Muhammad.

GMV alleges that Zafer acted fraudulently and breached his fiduciary and statutory duties in orchestrating three transactions between 2011 and 2013 involving the acquisition of equity and preference shares in Borcos, totalling over RM386 million.

The first transaction involved the purchase of a 35% stake in Borcos for RM146.5 million. This was followed by a second acquisition of a 65% stake for RM190.45 million. The third transaction — which forms the subject of the current hearing — was the RM50 million purchase of 25 million ICPS from Restu Kuala Sdn Bhd, a company wholly owned by Sidqi and Wan Hamimie.

GMV claims that the transactions were executed without proper commercial justifications, in disregard of internal assessments, and that Zafer colluded with Sidqi and others to benefit personally or to enrich third parties. GMV alleges that it was induced to waive its rights under a put option agreement and a profit guarantee clause, to its detriment.

Zafer passed away in 2022, and the suit is now being pursued against his estate.

GMV maintains that the fraud was only uncovered after an internal forensic review by Deloitte in 2015, and claim no limitation period applies under Malaysian trust law. It is seeking, among other reliefs, the return of monies paid, damages, and declarations of breach of trust and conspiracy.

The trial in the High Court continues on Aug 11.

Edited ByS Kanagaraju

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