Malaysia’s ALAM Maritim CEO Briefly Detained in Corruption Investigation
Malaysia’s offshore services firm for the oil and gas industry, ALAM Maritim Resources, confirmed reports that its CEO was briefly remanded earlier this week by the Malaysian Anti-Corruption Commission as part of an ongoing investigation. The company said that Datuk Azmi has resumed all executive roles and leadership responsibilities and that the day-to-day business operations, financial position, and strategic government remain stable and unaffected.
The company reported in a stock exchange filing on Monday, August 17, that its Group Managing Director and Group Chief Executive Officer, Dato' Azmi bin Ahmad (Dato' Azmi), was under remand to facilitate an ongoing investigation by the Malaysian Anti-Corruption Commission. Two days later, on Wednesday, August 19, it said he had been released from remand. Media reports highlight that he could only be held for 24 hours without court action, but the police can hold the person to decide whether there is enough evidence to charge a suspect or to complete an investigation.
“The remand is for the purpose of facilitating the ongoing investigation and does not constitute any finding of wrongdoing,” the company stated.
The report, however, raised concerns as ALAM Maritim only recently emerged from a reorganization. The company completed a refinancing in October that included debt reduction and a reverse merger of its stock, along with issuing rights and warrants. The restructuring focused on the offshore support ship segment, which had accumulated a large amount of debt. In 2022, the company’s external auditors had issued a denial of opinion regarding the group’s audited financial statements.
The company submitted an application in May to the stock exchange to no longer be classified as a “financially charged company.” The application was accepted in June, and the company returned to the full exchange.
The company did not comment on the nature of the investigation underway by the Malaysian Anti-Corruption Commission. Media reports, however, noted that the commission is pursuing a probe into the findings from the Royal Commission of Inquiry into a state-run savings scheme for Malaysian hajj pilgrims. The fund makes investments in Malaysian companies and is reported to have supported the expansion into the offshore support vessel business.
The company, through a subsidiary, had formed a joint venture in 2009 to manage the OSV business. It partnered with the pilgrim fund.
The Royal Commission highlighted that the fund had taken large impairment charges on its investments in ALAM Maritim. A subsequent recovery assessment estimated that only a small fraction could be potentially recovered.
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MACC is believed to be investigating the joint venture and the financial losses from operations.
Dato Azmi has led the company as its chief executive since 2006.
