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- “SunCon is also currently seeking legal counsel to evaluate the appropriate actions to be taken on certain sub-contracts and parties.”
KUALA LUMPUR (July 22): Sunway Construction Group Bhd (KL:SUNCON) said one of its employees is being investigated by the country’s anti-graft agency over engagements with unnamed sub-contractors.
The Malaysian Anti-Corruption Commission (MACC) has initiated an inquiry and “this isolated investigation does not concern the way SunCon secures contracts from its clients,” the company said in an exchange filing.
The investigation has no financial or operational impact on Sunway Construction, the company stressed, noting that it has been and continues to be fully cooperative with authorities.
“SunCon is also currently seeking legal counsel to evaluate the appropriate actions to be taken on certain sub-contracts and parties,” the company added.
At Monday's market close, SunCon was the third top decliner and the most traded stock on Bursa Malaysia. The counter fell as much 17.56% in the early session, before paring some losses to end the day at RM5.49, still down 8.19% from Friday's close of RM5.98.
It saw 110.61 million shares exchange hands, representing 8.42% of its share capital. At its last close, the counter had a market capitalisation of RM7.21 billion.
SunCon's announcement came on the heels of the ongoing probe by MACC dubbed Op Ways since last Thursday, over alleged corruption involving a data centre construction project tender in Johor worth some RM180 million.
MACC's operation resulted in the arrest of a manager of a construction company, alongside his wife and two men in Klang Valley, believed to be involved in corruption over the procurement of the data centre construction project.
The raid in the manager's home by the agency also resulted in the discovery of approximately RM7.5 million in cash, luxury watches, jewellry, and gold coins in his home in Petaling Jaya.
According to reports, the suspect was in the process of burning almost RM1 million in cash when the raid occured.
The MACC also identified two companies suspected of obtaining data centre construction projects by bribing the contract manager, according to reports.
SunCon has garnered investor attention since last year, on the back of a slew of data centre project wins with outstanding order book nearly RM8 billion recorded as at last month.
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