Firm fined RM18m over pipeline projects

Kuala Lumpur: Suria Strategic Energy Resources Sdn Bhd (SSER), a subsidiary of the Ministry of Finance which carried out two petrochemical and gas pipeline projects worth RM9.4 billion, was on Friday fined RM18 million by the Sessions Court here for failing to comply with Bank Negara Malaysia conditions.

Among the offences were that SSER had issued loan funds from The Export-Import Bank of China not based on the progress of the Multi-Product Pipeline (MPP) and Trans-Sabah Gas Pipeline (TSGP) projects and paid RM8.3 billion or 88 per cent of the cost of construction of RM9.4 billion for the two projects to the contractor, China Petroleum Pipeline Engineering Co Ltd (CPP), when work progress was only at 13 per cent.

Judge Manira Mohd Noor meted the sentence on SSER, which was represented by Kishan Narendra Jasani (a representative appointed by the board of directors for the court case), after he pleaded guilty to six charges on behalf of the company as the accused. In her judgement, Manira said the offence committed by SSER could give negative impact to the country’s public and economic interests and the punishment was a lesson to SSER and other companies not to commit the same offences.

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SSER was fined RM3 million for each charge for a total fine of RM18 million.

When asked by the judge what is his post in the company, Kishan Narendra said he was only representing the company.

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According to the first to the third charge, SSER was charged for failing to comply with conditions in the written approval dated April 13 2017 by BNM under Sub-section 214(2) of the Financial Services Act 2013 to acquire foreign currency loans from non-residents, for which SSER has issued loan funds from The Export-Import Bank of China not based on the progress of the Multi-Product Pipeline (MPP) project.

SSER also failed to ensure good and effective governance in managing the implementation of the MPP project as well as the failure to obtain the written approval of BNM for the change of information relating to the timeline for the implementation of MPP project.

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