No conflict of interest for Tanjung Offshore

PETALING JAYA: Tanjung Offshore Bhd said there does not appear to be any conflict of interest or related breach of duty with respect to directors Tan Sri Tan Kean Soon and Muhammad Sabri Ab Ghania, according to a special audit by Ferrier Hodgson MH Sdn Bhd.
In a filing with the stock exchange, Tanjung Offshore said it will forward the report to Bursa Malaysia.
The company has also set up a special task force board committee to review the report.
"The committee will report to the board during its next board meeting with recommendations to enable the board to make the best decision in taking necessary recourse and action," it noted.
Tan is now executive director of Tanjung Offshore, while Muhammad Sabri had resigned earlier, citing personal reasons.
Tanjung Offshore withdrew its civil suit against Tan and five others in March, soon after the cancellation of an EGM called by Tan, who in turn dropped a suit against several directors and officials of the company.
About a week ago, it was reported that Tanjung Offshore's former group adviser and managing director Datuk Harzani Azmi was detained by the Malaysian Anti-Corruption Commission in relation to the acquisition of Gas Generators (M) Sdn Bhd worth RM34.3 million in October 2013.
Following that, Tanjung Offshore said in a statement that it is implementing a whistle-blowing policy to provide directors and employees a platform to raise their concerns on any malpractices following the recent boardroom tussle in the group.
It is aimed at strengthening corporate governance within the group, taking a cue from recommendations of a forensic audit by Ferrier Hodgson triggered by several "contentious transactions."
"The policy will enable every issue to be speedily investigated and for action to be taken and resolved effectively within the group if possible," chairman Datuk Mohd Hafarizam Harun said.
Hafarizam said the whistle-blowing policy is in line with "best corporate practices" and serves as a major step for the group toward restoring investor confidence.
"In line with this, we are also in the midst of conducting a thorough review of Tanjung Offshore's standard operating procedures, guidelines and internal systems to put right the shortcomings that gave way to corporate weaknesses in the past," he added.
Hafarizam said the improvements on the company's corporate governance have started to take root with the new board at its helm, noting that it is working closely with regulatory authorities to bring the company back to the right footing.
"We have an impressive board lineup with members coming from a variety of qualifications including engineering, legal, corporate finance, accountancy and public relations. We trust with their expertise and vision. Tanjung Offshore will improve its top line and bottom line in the near term," he added.
Meanwhile, commenting on the company's prospects, Hafarizam said it is looking to revert to a "pure play" oil and gas service provider, and is optimistic of significant improvements in its oil and gas activities by investing in technologies that would realise lower operational costs.
He also said Tanjung Offshore would actively bid for oil and gas projects particularly in services involving drilling, engineering equipment and gas generation, both locally and abroad.
For the first quarter ended March 31, 2015, Tanjung Offshore fell into the red, registering a net loss of RM1.97 million against a net profit of RM2.10 million. Its shares closed 1 sen higher on Friday, at 47 sen.