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Focus Malaysia
3 days ago
- Business
- Focus Malaysia
Sabah's GRS gov't steps up accountability with RM1.97b lawsuit against global audit giant EY
THE Sabah state government under Gabungan Rakyat Sabah (GRS) is continuing to signal a firmer commitment towards transparency and accountability in managing state institutions. Towards this end, the Sabah Development Bank (SDB), one of the state's most important financial institutions, has filed a RM1.97 bil lawsuit against global audit giant Ernst & Young (EY), alleging negligence in its audit work between 2017 to 2022, sources told FocusM. According to court documents sighted by FocusM, EY is accused of failing to detect serious financial irregularities during its audits, contributing to the accumulation of more than RM2.2 bil in non-performing loans (NPLs) and substantial losses for SDB. Initiated after an internal review under the Sabah leadership, the lawsuit marks a decisive step by the GRS administration to address long-standing financial problems at the bank. The case also represents a broader effort to safeguard public funds and reinforce integrity across government-linked institutions. In its statement of claim, SDB outlined 17 key points of alleged audit negligence by EY, including: Failure to detect over RM2.2 bil in NPLs Weak internal controls and failure to identify credit risks Reliance on outdated collateral valuation reports which lead to asset misstatements Audits conducted without professional scepticism Use of 'creative accounting' to mask financial weaknesses through loan 'evergreening' practices EY is also accused of having been aware of the true extent of asset impairments since 2017 but failing to advise SDB to make appropriate provisions, allegedly to maintain a positive financial image for the bank in order to support its bond and market borrowings. Clamping down on mismanagement On July 10 last year, State Finance Minister Datuk Masidi Manjun disclosed in the State Legislative Assembly that as of May 2023, a staggering 75% of SDB's RM6.6 bil loan portfolio had turned non-performing or impaired. He revealed that the former management had engaged in 'creative accounting' whereby new loans were issued to delinquent borrowers to repay old debts, thus masking the true extent of the NPL problem. Between 2017 and 2022 alone, the previous leadership allegedly 'fabricated' RM580 mil in book profits by recycling credit and recording unpaid interest as paper gains. Worse, many loans were approved without proper due diligence, allowing unqualified borrowers to tap into public funds. The bank's bond-driven funding model also worsened its liabilities as repayments fell short of bond maturities, thus forcing SDB to borrow further just to stay afloat. While financial mismanagement of this scale would once have been quietly buried, the present administration has chosen transparency. 'Cleaning up the dirt' The move comes as part of a wider approach under Chief Minister Datuk Seri Hajiji Noor's leadership. Based on new report, several individuals, including GRS assemblymen, are expected to be charged in court soon over alleged misconduct involving state-issued mining licenses. Throughout that investigation, the Sabah state government has publicly committed to giving full cooperation to the Malaysian Anti-Corruption Commission (MACC) with no political interference. The MACC has since clarified that the Chief Minister was not among those under investigation, and enforcement officials acknowledged the state's openness during the probe. Together, these developments point to a shift in Sabah's political and administrative culture that prioritises public accountability over political convenience. In SDB's case, EY was continuously appointed as external auditor by the previous state governments. However, it was only after the GRS government took over the state administration and new management was appointed at SDB that the true scale of the losses was uncovered. Since assuming oversight of SDB in mid-2023, the GRS administration has taken steps to overhaul the bank's governance. The bank was formally placed under the Chief Minister's Incorporation and the State Treasury with the new board launching sweeping reforms. These include a full internal audit, re-classification of loans in line with Bank Negara Malaysia (BNM) standards and legal action against 43 NPL borrowers. Professional recovery agencies have been engaged with the board targeting the recovery of RM1 bil in NPLs annually over three years. In the first year alone, SDB recovered RM1.9 bil in legacy loans from government-linked companies (GLCs) while reducing the bank's bond obligations from RM5 bill to RM3.3 bil. In early 2024, SDB rejected RM1.5 bil worth of new loan applications after stricter credit reviews, signalling a renewed focus on financial discipline. Very broadly, this lawsuit sends a clear message that even large corporate players will be held accountable if public interests are harmed. It also underscores the expectation that auditors, banks and other state-linked entities must meet higher governance standards going forward. Looking ahead, the GRS-led government is expected to pursue further improvements to financial oversight across state agencies and government-linked companies. The ultimate aim is to prevent a repeat of past failings, ensure stronger protections for public funds and build public confidence in Sabah's key institutions. As the state continues to focus on economic development, job creation and investor confidence, this latest move shows that governance reforms remain a key part of the agenda. – June 19, 2025 Main image credit: Sabah Development Bank's website
The Sun
05-06-2025
- Business
- The Sun
Paramount aims to maintain momentum after record high sales of RM1.4b in FY24
KUALA LUMPUR: Paramount Corporation Bhd is poised to build on the momentum of record high property sales amounting to RM1.4 billion in 2024, a 24% increase compared to 2023, for the current financial year. Group CEO and director Jeffrey Chew Sun Teong said the milestone of achieving the highest annual sales in its history underlines strong market demand and the company's effective project pipeline. In addition to the record-breaking achievement, Paramount's unbilled sales rose by 12% to RM1.6 billion, providing healthy earnings visibility moving forward. 'While the overall take-up rate was not exceptionally high, the company views this as a natural result of its large number of project launches in 2024. The company remains unfazed, noting that developments with longer sales periods are expected to register lower take-up rates initially, especially when launched at scale,' Chew told reporters after the Paramount's annual general meeting today. Moving forward, Paramount is expected to sustain its growth trajectory into 2025, supported by a robust pipeline of ongoing projects stemming from a record RM2.2 billion worth of property launches in 2024. 'This marked the highest launch value in the company's history, with many of the developments continuing to drive sales into the current year. The launches were well diversified, with 72% comprising high-rise units, 27% landed properties and the remaining 1% commercial. 'Spread across multiple locations, the breadth of projects reflects Paramount's strategic focus on maintaining a balanced portfolio, both in terms of product mix and geographical distribution, helping to ensure resilience amid varying market conditions,' Chew said. Paramount achieved revenue of RM1 billion in FY24, a 3% increase from FY23. The group's profit before tax (PBT) rose by 20% to RM156.9 million compared to RM130.2 million in FY23 on the back of sustained revenue from the property segment and dividend income from its investment in another property developer. Profit attributable to ordinary equity holders grew 24% to RM102.4 million from RM82.8 million in FY23. In FY24, the property segment achieved a record high PBT of RM145 million, contributing 92.4% of the group's total PBT, supported by revenue of RM965.3 million. The investment and other segments saw strong improvements, largely driven by the group's stake in Eco World International Bhd (EWI). The coworking segment reported an 80% jump in revenue to RM23.5 million (including RM5.2 million in intersegment revenue). However, PBT declined to RM700,000 from RM2 million achieved in FY23, primarily due to the absence of a one-off impairment reversal that was recognised in FY23. As of Dec 31, 2024, total assets stood at RM3.1 billion, up from RM3 billion a year earlier. Total liabilities rose to RM1.6 billion from RM1.3 billion. Chew said, 'Paramount's gearing level rose slightly in 2024, mainly due to higher borrowings and financing related to its investment in EWI. The company also refinanced its perpetual debt during the year, contributing to the increase. 'Gearing level is currently higher due to the structure of its financial instruments and recent refinancing activities. Despite this, the company has maintained a consistent dividend payout track record, distributing at least 38% of its profits annually over the past decade. 'In total, shareholders have received approximately RM1.15 in dividends over 10 years, exceeding the company's current share price of under RM1.10.' With RM2.2 billion worth of launches in 2024, Paramount's portfolio remains well diversified, comprising 72% high-rise developments, 27% landed properties and 1% commercial projects. This broad spread across product types and locations provides resilience against unforeseen challenges. The company believes this balanced approach will help sustain overall performance throughout the year, even if individual projects face temporary setbacks.
The Sun
27-05-2025
- Business
- The Sun
Gamuda Land acquires 336-acre plot for RM248.7m
PETALING JAYA: Gamuda Land has acquired a 336-acre land parcel at the southern tip of the 1,530-acre Gamuda Cove development. This expansion is a move to leverage the success of the adjacent Gamuda Cove, where substantial investments have already been made, resulting in a thriving community. The land was acquired for RM248.7 million, with an estimated GDV of RM2.2 billion. The newly acquired land, strategically positioned south of Gamuda Cove, serves as the southern gateway to the township. Nestled between the lush Paya Indah Discovery Wetlands and the Elite Highway, this acquisition allows Gamuda Land to maximise its placemaking initiatives while capitalising on existing infrastructure investments. The expansion will also provide alternative access routes via Jalan Dengkil–Banting/Bangi, further enhancing the township's accessibility and appeal to a broader market. With most of the planned landed residences in Gamuda Cove already launched, this acquisition is a timely move to replenish Gamuda Cove's residential offerings. The new land parcel will introduce a fresh range of residential products tailored to meet the growing demand for quality landed homes set amidst a master-planned township, ensuring the continued success of Gamuda Cove as a premier residential and commercial hub in the southern corridor of Klang Valley. Gamuda Land CEO Chu Wai Lune said, 'This strategic land acquisition is a continuation of the success we have achieved with Gamuda Cove. Our proven track record in creating sustainable, thriving communities has been demonstrated by the strong uptake of our landed properties, with an average of over 90% sold since 2019. This expansion not only reinforces our commitment to delivering quality homes but also allows us to enhance the overall vibrancy of the township, ensuring it remains a sought-after destination for both residents and investors.' By the end of 2026, Gamuda Cove will have delivered over 5,000 homes, establishing a substantial resident population that provides a strong foundation to support and drive its commercial activities. Gamuda Land's next focus is to deliver commercial vibrancy through strategic partnerships. Additionally, the company secured partnerships with various organ-isations to enhance placemaking in Gamuda Cove, including the introduction of eco-tourism activities at the 90-acre Wetlands Arboretum and Paya Indah Discovery Wetlands. These initiatives will complement existing attractions such as SplashMania Waterpark and Discovery Park, further enriching the township's appeal. These new offerings will create a dynamic, family-friendly destination that encourages visitors and tourists to support businesses in Townsquare and the upcoming Cove Centrum retail hub. Gamuda Cove is also ready to welcome ASAI Gamuda Cove hotel in 2026, a lifestyle hotel developed in partnership with Dusit International Group. Accessibility to Gamuda Cove will be further complemented via the Cyberjaya toll-free interchange which is targeted to be ready in August 2025. This new interchange will significantly improve con-nectivity, reducing travel times to and from Cyberjaya to under 15 minutes. Gamuda Land's masterplanning approach integrates sustainability and community-centric design, ensuring a well-balanced township that harmonises with nature. Future developments in the newly acquired land will incorporate biophilic design elements and sustainable construction methods, reinforcing Gamuda Land's commitment to reducing carbon footprints and enhancing liveability. To date, Gamuda Land has delivered over 60,000 homes, showcasing its strong track record in township development. This latest acquisition aligns with the company's balanced approach to township development, ensuring long-term growth while complementing its Quick Turnaround Project strategy. It also supports Gamuda Land's broader plan to invest RM10.5 billion over the next five years, with a total GDV of RM26 billion, focusing on growth corridors in Vietnam, Malaysia, and the UK.
Barnama
23-05-2025
- General
- Barnama
Penang Reviewing Land Issue Threatening Future Of 4PAWS Shelter
GENERAL GEORGE TOWN, May 23 (Bernama) -- The Penang government is reviewing concerns raised by the Persatuan Haiwan Terbiar Malaysia (SAFM) over land issues that threaten the future of the Penang Animal Welfare Society (4PAWS) shelter in Teluk Bahang. State Local Government and Town and Country Planning Committee chairman H'ng Mooi Lye said that while no decision has been made yet, the land currently occupied by 4PAWS is under lease until 2030. The organisation is currently working to raise funds to purchase the site. 'In February and March, 4PAWS, through its manager Yan Naung Thet, also known as Murugan, approached the state government and the Penang Island City Council (MBPP) to seek assistance in extending his stay in Malaysia, allowing him to continue volunteering at the shelter. 'At that time, the founder of 4PAWS, Barbara Janssen, was unwell, and discussions centred solely on ensuring continuity of shelter operations, not on the lease issue,' he told Bernama. H'ng was responding to SAFM's call for the state government to intervene and help resolve the land dispute affecting the shelter, which houses around 700 dogs. Earlier, SAFM president R. Kalaivanan said that over 700 dogs at the 4PAWS shelter are at risk of losing their home as the landowner intends to sell the property. The organisation has been given until the end of this month to decide whether it can purchase the land at the price of RM2.2 million. SAFM has appealed to Chief Minister Chow Kon Yeow to urgently allocate permanent land to ensure the shelter's continued operation. H'ng added that 4PAWS is a non-governmental organisation providing sanctuary to stray dogs in Teluk Bahang. The shelter has also contributed to MBPP's efforts to manage the stray dog population by caring for animals that have been vaccinated, neutered, and made available for adoption.
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New Straits Times
22-05-2025
- Politics
- New Straits Times
[UPDATED] Bung Moktar, wife fail in final bid to challenge corruption charges [WATCH]
PUTRAJAYA: Datuk Seri Bung Moktar Radin and his wife, Datin Seri Zizie Izette Abd Samad, failed in their final bid to challenge the Court of Appeal's decision ordering them to enter their defence on corruption charges amounting to RM2.8 million. This is after a three-judge Court of Appeal panel led by Datuk Che Mohd Ruzima Ghazali unanimously dismissed the couple's leave application to review the decision today. The court said the appellants failed to meet the threshold of proving any exceptional circumstances or miscarriage of justice that would warrant a review of the earlier decision. On Nov 18 last year, the Court of Appeal ordered Bung Moktar and Zizie Izette to enter their defence on three corruption charges after allowing the prosecution's appeal against the couple's acquittal by the Kuala Lumpur High Court on Sept 7, 2023. On Sept 2, 2022, Sessions Court judge Rozina Ayob ruled that a prima facie case had been established against the accused at the close of the prosecution's case and ordered them to enter their defence on all three charges. On May 3, 2019, the Kinabatangan member of Parliament was charged with two counts of accepting bribes amounting to RM2.2 million and RM262,500 as an inducement to secure Felcra's approval to invest RM150 million in Public Mutual unit trusts. He was alleged to have accepted the bribes from Madhi, an investment agent with Public Mutual Bhd, through Zizie Izette at Public Bank's Taman Melawati branch here between 12.30pm and 5pm on June 12, 2015. Zizie Izette was charged with three counts of abetting her husband at the same location, date, and time.
