Former Sime Darby CEO Ahmad Zubir Murshid was charged at the Kuala Lumpur Sessions Court today with two counts of criminal breach of trust (CBT), which allegedly cost the company over RM100 million in losses.

The former CEO stands accused under Section 409 of the Penal Code with failing to prevent two companies from acquiring land earmarked for Sime Darby’s use in Sarawak, thereby forcing the corporation to later acquire the said companies to gain control of the land.

The prosecution is alleging that in both cases, as then-CEO in November 2008, Zubir, despite having acquired state government approval for the use of said land by Sime Darby for its Sarawak Upstream Expansion Plan, had knowledge of the later award of said lands to Vertical Drive Sdn Bhd and Natural Ambience Sdn Bhd and failed to act or take legal action to stop it.

NONE Sime Darby later had to pay RM85 million and RM16 million to take over Vertical Drive and Natural Ambience respectively to gain control of the land.

Judge Jagjit Singh set bail for Zubir at RM100,000, with one surety for each charge.

His case is set for case management on Oct 2. The offence carries a maximum sentence of 20 years in prison.

Zubir was represented by K Kumarendran while the prosecution was led by MACC deputy public prosecutor Anthony Kevin Morias.

Sime Darby had also initiated civil proceedings against Zubir on the matter, with the former CEO also filing a counter-suit against them.

RM2bil in overruns and provisions

Sime Darby is the world's largest listed palm-oil producer by acreage and one of Malaysia's biggest conglomerates, with its portfolio also including power, property and other divisions.

azlan Morais declined comment on whether there was evidence Ahmad Zubir had profited personally from the arrangement.

Sime Darby shocked investors in 2010 by announcing that its energy and utilities division had suffered RM2.09 billion in overruns and provisions at loss-making projects including the huge Bakun hydroelectric dam on Borneo.

Ahmad Zubir was asked to go on leave over those deficits and was replaced shortly afterwards. The company has also sued him and several other senior executives over the losses.

Sime Darby recorded a full-year net profit of RM3.66 billion for the last financial year, up sharply from RM726.8 million in the previous year, when it made the provisions.