Cahya Mata's suspended CFO’s contract ends

KUALA LUMPUR (Aug 31): The contract of Cahya Mata Sarawak Bhd’s (CMS) suspended chief financial officer (CFO) Syed Hizam Alsagoof ends today (Aug 31).

Syed Hizam, 53, has been suspended since May to facilitate investigations into allegations of possible financial mismanagement in relation to the group’s investments and operations.

Syed Hizam Alsagoof (Photo credit: cmsb.my)

In a bourse filing yesterday, CMS said its board has decided that the group's general manager for finance, Tan Mei Fung, will continue as head of finance pending the recruitment of a new CFO.

CMS also said its independent consultant, KPMG Management & Risk Consulting Sdn Bhd (KPMG MRC) — which was appointed in June to review the group’s financial management of certain investment and contracts — has completed its reports.

Tan Mei Fung (Photo credit: cmsb.my)

However, the legal investigations of the investments and contracts are still ongoing, the group said.

“The company expects the complete results of the review to be announced by the end of October 2021,” it added.

In June, CMSB reshuffled the members of its audit committee, as well as its nomination and remuneration committee.

This came amid allegations of conflict of interest in terms of awarding contracts and possible financial mismanagement among its top executives.

In a separate filing yesterday, CMS said its net profit more than doubled to RM47.39 million in the second quarter ended June 30, 2021, from RM16.71 million a year ago, on better contributions from all its core business (cement, trading and property development), except for its the road maintenance division.

Revenue increased 32.26% to RM185 million, from RM139.88 million in the same period last year.

For the first half, CMS’ net profit increased 269.4% to RM125.19 million, from RM33.99 million in the previous January-June period.

Six-month revenue rose 17.53% to RM387.06 million, from RM329.32 million previously.

CMS said the higher first-half profit was largely attributable to gains on the disposal of Kenanga Investment Bank shares of RM28.5 million, gain on disposal of land of RM12.7 million, and improved performance of associates by RM29.2 million.

It added that traditional core businesses also improved their performance due to the opening of economic activities with selective easing of the movement control order, as compared to the corresponding period.

Notwithstanding that, the group said the economic environment continues to be challenging with the recent upsurge in the Covid-19 infections in the country, which may delay the full opening of economic activities nationwide, especially all traditional core businesses.

“Increased cost pressures will come from logistics and materials, the impact of which the group will take measures to mitigate. The performance of the coming quarters will depend on the speed of the progress of Malaysia's National Recovery Plan, and early signs have indicated positive results from the rapid vaccination programme of the government,” it added in a statement.

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