Cahya Mata Sarawak red flags rile minority shareholders

Free Malaysia Today

Huge losses at phosphate division and corporate governance issues drawing concerns.  Read More: https://www.freemalaysiatoday.com/category/highlight/2025/03/24/cahya-mata-sarawak-red-flags-rile-minority-shareholders/  Laporan Lanjut: https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/03/24/pemegang-saham-minoriti-bimbang-hala-tuju-cahya-mata-sarawak/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #ChayaMataSarawak #RedFlags

Transcript

00:00Minority shareholders of Chahiyamata Sarawak Berhard have raised concerns over the fate

00:06of its phosphate plant and unresolved corporate governance issues plaguing the conglomerate.

00:12Several minority shareholders told FMT that the phosphate business, which is parked under

00:17Chahiyamata Phosphates Industries, Sdn. Berhard, remains a financial black hole for the group.

00:23Despite higher profits across all other business divisions in the 2024 financial year, the

00:28Trouble Phosphates division remained a drag, posting a loss before tax of Rp. 96.8 million.

00:36Minority shareholders are also perplexed by CMSB's latest financial statement, which

00:40recorded a Rp. 28.6 million operating profit for the phosphate division in the fourth quarter

00:46of the 2024 financial year, despite having no revenue that quarter marking a sharp turnaround

00:52from the Rp. 57.6 million loss in the fourth quarter of the 2023 financial year, raising

00:58questions about how the reported profit was generated.

01:02The minority shareholders also flagged the operational, financial, and legal issues plaguing

01:07the project and asked if these problems would undermine its viability.

01:11In particular, they highlighted the unresolved dispute over the power purchase agreement

01:16between CMPI and state utility firm Sarekat Sesko Berhard that was inked in 2019, as CMPI

01:22has since been hit with a Rp. 342.25 million counterclaim by Sesko over electricity charges

01:29billed to the former.

01:31Shareholders highlighted CMPI's dire financial state, noting that its latest financial statement

01:36showed net current liabilities of Rp. 275 million as of December 31, 2023, rendering

01:43the company as technically insolvent.

01:46The minority shareholders are also unhappy that the group has not appointed a new head

01:50of internal audit after the previous head, Asril Rahman Abdul Hadi, vacated the position

01:55in October 2022.

01:57They said simply allowing the position to be handled by someone in an acting capacity

02:02does not bode well for transparency and corporate governance.

02:06Narmada Raja, FMT.

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