1. Introduction

Further to the Company’s announcement dated 11 November 2020, the Board of Directors of the Company wishes to announce that the Company and its 60% owned indirect subsidiary, Deleum Primera Sdn Bhd (“Deleum Primera”), have on 25 November 2020 lodged a formal report to the Malaysian Anti-Corruption Commission (“MACC”) over an alleged illegal scheme involving Deleum Primera’s employees, suppliers, contractors and employees of a client of Deleum Primera (“Scheme”). The Company and Deleum Primera are currently assisting MACC in its investigation.

The Board of Directors of Deleum Primera through its solicitors, Messrs. Lim Chee Wee Partnership, have executed the ex-parte Forthwith Delivery Up Order and ex-parte Mareva (Freezing) Injunction against the defendants comprising Deleum Primera’s employees, suppliers/contractors and employees of a client of Deleum Primera, arising from the alleged wrongdoings. The affected employees continue to be suspended.

Further, on 9 December 2020, the Kuala Lumpur High Court allowed an application filed by one of the Defendants to discharge the ex-parte Forthwith Delivery Up Order and the ex-parte Mareva Injunction. The inter partes Mareva Injunction hearing date for the relevant Defendant has been set on 18 February 2021. Meanwhile, Deleum Primera has obtained an ad-interim (holding over) Forthwith Delivery Up Order and Mareva Injunction against the rest of the defendants up until 18 February 2021.

2. The Edge Article Entitled “Senior Deleum unit execs questioned by MACC in probe into illegal scheme involving Petronas Carigali”

In relation to the article entitled “Senior Deleum unit execs questioned by MACC in probe into illegal scheme involving Petronas Carigali” appearing on The Edge Markets on 14 December 2020 (“The Edge Article”), the Company confirms that two senior executives of the Company were interviewed by the MACC last week in relation to its investigation into the alleged Scheme. The relevant senior executives of the Company are assisting MACC with its investigation.

The Company wishes to clarify the statement in The Edge Article that “the alleged scheme was purportedly initiated to defraud Petronas Carigali in relation to multiple maintenance and services contracts between the Petronas unit and DPSB”, in that based on the Company’s internal investigations, the Scheme has caused loss to Deleum Primera as set out in its Statement of Claim filed on 5 November 2020.

The Company denies any involvement of the Company’s top management in the Scheme and further denies any alleged understating of profits for the 2019 financial year by Deleum Primera and any other allegations of false accounting by Deleum Primera. Deleum Primera’s financial statements were prepared in accordance with the Malaysian Financial Reporting Standards.

3. Operational Impact

Deleum Primera has made the requisite changes to the management of its business and continues to operate its business as usual.

4. Financial Impact

The financial impact is currently from the fees incurred from legal representation and the investigation and the full financial impact cannot be ascertained as yet and is still being assessed.

5. Proposed steps to be taken

The Company will be relying on legal advice in the pursuit of this litigation.

Further announcements on the development of the above matter will be made to Bursa Malaysia Securities Berhad from time to time.

This announcement is dated 15 December 2020.