KUALA LUMPUR (Sept 2): Islamic finance expert Tan Sri Dr Mohd Daud Bakar is demanding almost RM11 million in compensation from two people over the alleged unauthorised use and exploitation of his name and reputation in connection with an investment scheme operated by Energy Eco Berhad (EEB).
In a statement on Wednesday, Mohd Daud, who is facing unauthorised securities activities and embezzlement charges, said he had issued separate notices of demand on Aug 18 against EEB chief executive officer Datuk Norliza Tajudin and businessman Datuk Seri Mahadi Badrul Zaman, the founder and partner of AUF MBZ Consortium PLT.
On Feb 23, Mahadi was charged with carrying out securities dealings without a Capital Markets Services Licence between June 14, 2021 and Aug 9, 2023, and between Sept 3, 2021 and Feb 15, 2024. Mohd Daud was charged with abetting Mahadi.
On May 11, Mohd Daud and Norliza were jointly charged with seven counts of criminal breach of trust amounting to over RM10 million involving EEB. These offences were allegedly carried out between June 22, 2021, and May 15, 2024.
Mohd Daud claimed that though he was chairman and a non-executive director of EEB, he was never involved in the company’s daily management, financial affairs, promotion of investments, investor negotiations or handling of investor funds.
He said Norliza and EEB’s management were responsible for the company's operations, while Mahadi was appointed as the marketing and/or distribution party for EEB’s investment scheme.
He claimed that his name and reputation were used without his knowledge or consent to enhance the credibility of the investment scheme and induce investors to participate, and only became aware of the alleged exploitation after EEB had defaulted on payments and investors contacting him.
Mohd Daud claimed he had used RM750,000 of his own funds to preserve his name and professional standing.
He is demanding that Norliza and Mahadi reimburse the RM750,000, as well as RM10 million in compensation for the alleged damage to his reputation, and indemnification for all related costs and expenses.
“Both Norliza and Mahadi were each given 14 days to provide a satisfactory response, failing which Tan Sri has instructed his solicitors to commence legal proceedings against them," the statement read.
Daud is represented by his solicitors from Messrs Shahrul Hamidi & Haziq.
In a statement to The Edge, Norliza's lawyer Datuk Gobinath Mohana said his client denied Mohd Daud's allegations and any liability for the sums claimed.
He said the letter of demand confirmed that Mohd Daud was a shareholder of EEB from 2018, and was appointed its chairman and director on July 2021.
"Given this role, our client finds it difficult to reconcile his claim of having no knowledge of or involvement in EEB's affairs," the statement said.
He said Norliza will her defend herself with all available legal means.
Norliza was also charged last month with 10 counts of receiving RM13.4 million in proceeds from unlawful activities.
The Edge is making efforts to contact Mahadi or his representatives.
Read also:
Islamic finance expert charged with unlicensed dealing of securities
Islamic finance expert charged with criminal breach of trust involving over RM10 mil
Trial for Mahadi, company director over unlicensed securities trading set for March next year
Investment company director Norliza charged again, this time for receiving RM13.4m in proceeds from unlawful activities