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KUALA LUMPUR (March 24): IJM Corporation Bhd (KL:IJM) said on Tuesday that the Malaysian Anti-Corruption Commission (MACC) has confirmed that its ongoing investigation does not involve the group as an entity.
In a bourse filing, IJM said it had received a letter from the MACC clarifying that "the investigation is confined to several individuals associated with IJM, and not the company itself”.
The clarification follows months of scrutiny after a January raid on IJM’s offices and the freezing of several bank accounts linked to an alleged RM2.5 billion money laundering scheme and overseas asset transactions. IJM had previously refuted the allegations and said it was unaware of any probe by UK authorities.
It had also said the freezing of the accounts was to facilitate an ongoing probe by the MACC and had no impact on its operations. Its chairman Tan Sri Krishnan Tan had also met with and cooperated fully with MACC officers, it noted, while other personnel requested to provide information were likewise assisting the authorities.
The MACC currently has three ongoing investigations linked to IJM, according to MACC chief commissioner Tan Sri Azam Baki at a press conference earlier this month.
Of the other two probes, one involves an allegation of bribery linked to a project, for which the commission had called in "the related chairman for his statement to be taken". The other involves Sunway Bhd’s (KL:SUNWAY) ongoing takeover offer for IJM, after receiving reports on the deal.
“We are looking at whether there is any element of corruption, abuse of power, or breach of governance in the matter,” he said, noting IJM’s shareholders include government-linked companies, raising concerns as public funds are involved.
Sunway in January launched a cash-and-share offer to acquire IJM, valuing the property and infrastructure group at RM3.15 per share, or about RM11 billion. The offer is conditional upon acceptance of more than 50% of IJM’s shares.
The Employees Provident Fund (EPF) holds more than a 20% stake in IJM, followed by Permodalan Nasional Bhd (13.5%), Retirement Fund Inc (9.64%), Ministry of Finance-owned Urusharta Jamaah Sdn Bhd (2.84%) and Lembaga Tabung Haji (1.47%), based on the latest available data.
The EPF also owns a 9.45% stake in Sunway.
IJM shares closed five sen higher at RM2.42 on Tuesday, valuing it at RM8.83 billion. Sunway slipped 10 sen to settle at RM5.29 for a market capitalisation of RM36 billion.
Read also:
Sunway's ongoing takeover offer for IJM under MACC investigation, says Azam Baki
Amid MACC probe, IJM chairman says has ‘full confidence in enforcement process and laws’
IJM says less than 10 bank accounts frozen by MACC, no impact on ops
IJM rejects money-laundering, UK probe allegations amid MACC inquiry
IJM says MACC, IRB officials visited its office to gather info; Azam Baki confirms probe
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