Reference is made to announcement dated 11 January 2019 made by the Company in relation to the subject matter.

On 30 January 2019, SESB engaged Grant Thornton Consulting Sdn Bhd. (“GT”) to undertake a complete inquiry to identify issues and risks that arise in relation to Advances made by SESB to Scomi Group Bhd (its former holding company), pursuant to which the Board had taken steps to implement additional protocols to further strengthen corporate governance and enhance management accountability and transparency.

GT’s Forensic Investigative Review Report was tabled to the Board of Directors in August 2020. SESB is currently working on implementing the recommendations, including among others, enhancing the governance and risk management structure and practices. This includes the tightening of delegated authority limits in respect of lowering the thresholds and strengthening the approval process.

In addition to the above, SESB commenced an action to recover advances made to Scomi Group Bhd. by way of filing a legal suit claiming a principal sum of approximately RM54,525,036.49 as at 31 March 2020. SESB has obtained an order in terms on 26 November 2020.

SESB will continuously enhance its controls and procedures to ensure that the areas under review are fully complied with and the Board will continuously monitor the process.

This announcement is dated 26 November 2020.