MSM wants CEO to explain stock irregularities

The firm has given Khairil Anuar 7 days to make the explanation and appointed Fakhrunniam as officer-in-charge in the interim


MSM Malaysia Holdings Bhd group CEO Datuk Khairil Anuar Aziz (picture) has been told to explain the inventory irregularities at MSM Sugar Refinery (Johor) Sdn Bhd.

In a filing to Bursa Malaysia yesterday, Khairil Anuar was directed by the board to be placed on leave of absence until further notice.

Khairil Anuar, who assumed the post on April 23, 2019, has been given seven days to make the explanation.

The sugar refiner added that it will continue its business as usual with the board appointing Fakhrunniam Othman as the officer-in-charge in the interim to perform the functions of the MSM group CEO.

Fakhrunniam is currently the group investment officer of FGV Holdings Bhd, MSM’s substantial shareholder.

MSM has also established a board executive committee, comprising directors Datuk Syed Hisham Syed Wazir, Datuk Dr Abd Hapiz Abdullah and Datuk Haris Fadzilah Hassan, to guide and assist the officer-in-charge in the interim period.

Haris Fadzilah is currently the group CEO of FGV who was appointed on Jan 23, 2019.

MSM added that further announcements shall be made in the event of material developments on this matter.

Last month, MSM saw its net loss for the second quarter ended June 30, 2020, reduced to RM21.55 million from RM67.33 million on higher overall margin and lower finance cost.

Revenue for the quarter dipped 5.37% year-on-year to RM448.74 million from RM474.22 million last year due to decrease in quantity sold for the wholesale segment.

For the first six cumulative months, MSM eased its net loss to RM56.26 million from RM74.39 million, while revenue was marginally down to RM959.58 million from RM959.84 million.

FGV owns 51% stake in MSM which is involved in producing, marketing and selling refined sugar products under the flagship brand, Gula Prai.

“The company conducts its business principally through two operating subsidiaries, MSM Prai Bhd and MSM Sugar Refinery, producing a variety of sugar products ranging from refined sugar of various grain sizes, brown sugar, liquid sugar to premix and molasses.

“In addition, MSM also operates a logistics company MSM Logistics Sdn Bhd. At present, MSM’s annual production capacity reaches 2.25 million metric tonnes of refined sugar for the domestic and export markets.

“In 2019, MSM produced 1.07 million tonnes of refined sugar, of which about 83,341 tonnes were catered for the export market,” FGV said.

MSM’s shares closed 4.59% or two-and-half sen lower to 52 sen, valuing the sugar refiner at RM365.55 million, while FGV closed 1.69% or two sen higher, valuing the diversified and sustainable integrated agri-business company at RM1.20 on the development at MSM yesterday.