SAPURA Resources Bhd’s MD, Datuk Shahriman Shamsudin, has been directed to abstain from managing the group’s aviation business to avoid a conflict of interest.

This decision follows a New Straits Times report revealing that Shahriman is both a shareholder and executive director of Explorer Group Sdn Bhd, which also operates in the aviation sector, including maintenance, repair, and overhaul (MRO) services.

In response, Sapura Resources announced in a Bursa Malaysia filing today that a new Board Aviation Management Committee will take over Shahriman’s duties, with the aviation COO and other division heads reporting directly to the committee.

Last year, Sapura Resources planned to sell its stakes in two aviation subsidiaries for RM79.96 million to Abu Dhabi’s Royal Jet LLC, citing losses and a shift in focus to more profitable segments.

However, in December 2023, Explorer Group, where Shahriman is involved, signed an MoU with Royal Jet to collaborate on private flight operations in Subang, raising concerns about potential competition with Sapura’s aviation business.

Sapura’s board is now investigating the situation and exploring options to address any conflicts.

The company assured shareholders it will adhere to legal requirements and uphold good corporate governance.

Sapura Resources’ shares rose by 1 sen, closing at 28.5 sen today, with a market capitalisation of RM73.89 million. — TMR