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Boustead Sues Former Big-Wigs

SHAH ALAM: Boustead sues former big-wigs. Boustead Holdings Bhd had file a suit against its former chairman, former managing director and four other directors “for purported breach of fiduciary duty and is seeking jointly from them a sum of £6.4 million (RM35.37 million current value), according to the Edge newspaper.

The report stated the suit filed in June was filed against its former chairman chairman Tan Sri Mohd Ghazali Che Mat and its managing director Tan Sri Che Lodin Wok Kamaruddin.

Besides the duo, the remaining four named — are former directors Datuk Azzat Kamaluddin, Datuk Francis Tan Leh Kiah, Datuk Seri Ghazali Mohd Ali and Datuk Wira Dr Megat Abdul Rahman Megat Ahmad, where they are named as defendants.

Lodin resigned from Boustead and its related subsidiaries on Nov 30, 2018, while the others left the company last year.

The suit, according to the Edge wanted the courts to find the six were negligent in their duties. It appears that the suit is not related to the LCS or other defence projects.

It must be noted that Mohd Ghazali was a former Chief of Defence, having served from 1 November, 1985 to 5 October, 1987. Mohd Ghazali is the recipient of second highest military honour,the Panglima Gagah Berani (PGB) medal for his actions fighting the communists on 13 November 1957.

— Malaysian Defence

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Marhalim Abas: Shah Alam

View Comments (71)

  • Logical action but not more than a diversion and a smokescreen to shift the heat on them elsewhere

  • Perhaps Boustead's current management found they were in this current predicament due to previous management's overpromises but underdeliveries optimism in the LCS project? After all, it was they who went into that project.

  • I don't know about you guys but there is something about, ex-top level-servicemen suddenly becoming a corporate executives, etc, that rubs me the wrong way. Especially if they're still within the arms industry. I don't know why. Couldn't these retirees just stay at home play with their grandchildren or something? Still out and about making money for God knows who. I don't mind it if they're proven proficient for the job, good on them. But most of these guys are just jumping from board members to another board members from different corporation making me sick.

    Reply
    Its normal actually

  • i doubt this will prove any result or improvement in long term for boustead or industry but i will be optimistic for my sake.

    mr marhalim, any new info about LMS at teluk sepanggar?

  • @imba
    "ex-top level-servicemen suddenly becoming a corporate executives"
    The USA defence industry have took this to a whole new level. They even have powerful bloc of influencers called lobbyist. Ours are just schoolchildren in playground compared to how integrated is their lobbyist hold on both sides of the Government.

  • joe "The USA defence industry have took this to a whole new level. They even have powerful bloc of influencers called lobbyist. Ours are just schoolchildren in playground compared to how integrated is their lobbyist hold on both sides of the Government."

    Who do you think lobbies our government to buy at inflated prices, from dubious local agents with no track records? Who do you think selects things that the services don't want?

    At least over there, the vendors are OEMS and successful exporters in their own right. There have to be competitions for every new type and participants can have anything reviewed and investigated. Remember how the KC-X competition was restarted and how a DOD officer was jailed? Despite all the scandals that have happened here, I've never, ever heard of the same happening here and I don't think we can look forward to it happening any time soon.

    Here you are talking like none of us know what lobbyists are, while you can find no better word to describe them than "influencers." Please, spare us.

  • Lobby here, lobby there, got the catch no matter small or big and at the end everything going down....our children will suffer...

  • Fadiman - “at the end everything going down….our children will suffer”

    The end user doesn’t get the end product in time, with budget and on spec; the result is we fitter away our money, the end user doesn’t get the desired capability; nor the taxpayer their money’s worth and local companies (under the pretence of improving the local industry but in reality mostly contributing little; make money).

    The best part is we repeat the sane mistakes over and over again with little ability or desire to improve things ....

    imba- ““I don’t know about you guys but there is something about, ex-top level-servicemen suddenly becoming a corporate executives, etc,”

    Same thing happens almost everywhere : private entities hiring ex servicemen for the hope that their knowledge of how things work and their contacts will prove beneficial .Happens everywhere.

    Nothing wrong with that as long as these ex officers don’t act inappropriately by taking advantage of the fact that those in uniform they are dealing with are their ex subordinates and by trying to influence things that will benefit their company but will be detrimental to the end user.

    AM,

    Well said .....

  • @AM
    When people asks such questions without knowing how things works, rather than slamming them down as if its common knowledge, I try to explain things that are relatable. Influencer is something today's people understand more than lobbyist (some people might think that is the bellboy waiting at hotel lobbies).

    And while of course very little of our defence purchases goes thru w/o some 3rd parties, USA ones takes it up to another level by legalising such acts. They walk in sync out in the open brazenly with people in power from both divides. So even if their Govt changes hands every year, they still win outright unlike here where their fortunes are tied to one of either side only. Our amateur lobbyists has a long way to go in refining their influence techniques.

    Unlike ours, they are successful exporters, yes, because their stuff are proven, and the reason why its because they are trigger happy elsewhere around the world. You want our defence industry to follow in their bloodied footsteps?

    Some got caught because either they were too stupid and slipped up somewhere or they got too greedy and tried to eat a bigger pie thereby angering those in power that was on the cut. otherwise, everything is smooth sailing because win-win-win, except for their taxpayers who only knows USA good guys goes to war in other countries so that their enemies don't knock on their doors.

  • @fadiman
    It shouldn't even be allowed in the first place, regardless whether there is a criminal intention or not, its purely conflict of interest. Those that did commit a crime must be served justice. That is unquestionable.

    @Azlan
    "Nothing wrong with that as long as these ex officers don’t act inappropriately by taking advantage"
    It is everything wrong because that is exactly why they were brought into the private sector in the first place! Why do you think these companies hires top brasses generals and admirals rather than grunts who know the equipment more intimately? Certainly its not for their technical knowledge.