Guan Eng demands explanation for SC chair’s ‘shock resignation’
DAP chairperson Lim Guan Eng has urged the prime minister and the attorney-general to explain Securities Commission (SC) executive chairperson Syed Zaid Syed Jaffar’s “shock resignation”, and Awang Adek Hussin’s appointment as his successor.
This came after a report linked the resignation to the Attorney-General’s Chamber’s handling of a fraud case involving oil-and-gas company Serba Dinamik...
DAP chairperson Lim Guan Eng has urged the prime minister and the attorney-general to explain Securities Commission (SC) executive chairperson Syed Zaid Syed Jaffar’s “shock resignation”, and Awang Adek Hussin’s appointment as his successor.
This came after a report linked the resignation to the Attorney-General’s Chamber’s handling of a fraud case involving oil-and-gas company Serba Dinamik Holdings Bhd.
The resignation came just six months after Syed Zaid was reappointed as SC executive chairperson for a second three-year term.
“Both the prime minister and the attorney-general must give full explanation on Syed Zaid’s shock resignation and his immediate replacement with an Umno man.
“The government must act swiftly to reassure investor confidence that Malaysia’s capital market is run not for the benefit of vested interests but professionally, independently, competently with full adherence to transparency and respect for rule of law free from any political interference,” said the former finance minister last night.
Awang Adek was appointed as SC chief for a term from June 1, 2022 to May 31, 2025, replacing Syed Zaid whose resignation begins on May 31, 2022.
A report by The Edge yesterday linked Syed Zaid’s resignation to the AGC’s decision to withdraw charges against Serba Dinamik, which was accused of filing false financial statements to the stock exchange in what is described as the largest corporate fraud by a Bursa-listed company.
The report said this left the SC with no option but to issue fines instead. It slapped the maximum compound on Serba Dinamik and five of its executives, which it did to the tune of RM3 million each on April 13.
On top of the RM3 million compound, the company’s finance vice-president Muhammad Hafiz Othman was also issued another RM1 million compound.
Quit in protest?
The SC had said at the time that the compounds were issued with the public prosecutor’s written consent after the AGC had accepted Serba Dinamik’s letter of representation about the fraud case that was pending in court.
“Sources who confirmed this said it was no surprise that Syed Zaid, a corporate lawyer, has decided to quit, given what has happened in the past month,” The Edge reported.
Malaysiakini has contacted the SC regarding the report yesterday and is waiting for a response.
The SC is responsible for the oversight and regulation of the Malaysian financial services industry, including the supervision of Bursa Malaysia.
Awang Adek was previously the Umno MP for Bachok after winning the 2004 general election, and also served as senator from 2011 to 2013. He was also deputy finance minister from 2006 to 2013.
He was also an assistant governor of Bank Negara Malaysia and a former board member of the SC.
In a statement announcing his resignation, Syed Zaid said he welcomes Awang Adek’s appointment.
“It is an honour and privilege for me to serve the country, and lead an institution that stands resolutely strong like the SC. I welcome the appointment of Awang Adek, and wish him well in his new role as the next SC chairperson,” said Syed Zaid.
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