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TH Plantations sacks CFO after two-month suspension

TheEdge Mon, Sep 30, 2019 07:04pm - 10 months ago

KUALA LUMPUR (Sept 30): TH Plantations Bhd, in which Lembaga Tabung Haji holds a 73.84% stake, today dismissed its long-serving chief financial officer Mohamed Azman Shah Ishak.

"A letter to that effect has been sent to the CFO today," TH Plantations said in a filing with Bursa Malaysia.

The loss-making plantation group said the dismissal was made after due deliberation, upon evaluating the 53-year-old's reply to a show-cause letter from the management.

It said in the interim, responsibilities and functions of the CFO will be carried out by Marliyana Omar and Hamidah Hassan, who are assistant general manager and senior manager of the group's finance department, respectively.

Mohamed Azman, an accountant by training, was appointed as TH Plantations' CFO in January 2010.

His removal from office follows a nearly two-month-long suspension since he was served with the show-cause letter on Aug 9, after the new management that came in to turn the company around undertook a forensic audit exercise.

The group has yet to reveal the findings of the forensic audit.

While the focus of the forensic audit remains unclear, it is worth noting that in 2018, TH Plantations' unit Bumi Suria Ventures Sdn Bhd (BSV) suffered a massive impairment of RM244.07 million that saw its book value reduce by two-thirds.

The group acquired BSV for RM212.5 million, as well as its subsidiary, Maju Warisanmas Sdn Bhd, for RM42.08 million, in 2012.

TH Plantations incurred a net loss of RM594.61 million for the year ended Dec 31, 2018 (FY18), versus a net profit of RM22.41 million in FY17. Revenue declined 24.5% to RM519.32 million from RM687.98 million.

For the six months ended June 30, 2019, the group recorded a net loss of RM27.24 million compared with a net profit of RM3.43 million in the same period last year. Half-year revenue dropped 14.78% to RM221.40 million, from RM259.79 million.

Shares in TH Plantations were half a sen up at 30 sen at today's close, bringing a market capitalisation of RM265.16 million.

Read also:
Special Report: THP seeks to unwind mega expansion amid crippling debt
TH Plantations suspends CFO on findings from forensic audit
TH Plantations extends suspension of CFO until Sept 30

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