Keeping up with investigations
IJM issues a strong denial while MACC confirms probe.
The perils of running with the news cycle is that updates, as and when necessary, have to be prompt.
As this is a short update, I can safely say this is one of those rare freebies on The Malaysianist.
A few hours ago, Bursa-listed construction giant IJM Corp denied reports linking it to a money laundering probe, including any involvement with the UK’s Serious Fraud Office.
Neither IJM nor its UK associates were aware of any SFO investigation and have not been approached by the agency, the firm said in a statement yesterday.
When contacted on Monday, an SFO spokesperson told The Malaysianist that it could “neither confirm nor deny any investigation into this matter”.
IJM also refuted the allegations of money laundering as unfounded, emphasising that its UK investments since 2012 have been funded legitimately through facilities from Malaysian financial institutions and channelled to project special-purpose vehicles in the UK.
The firm’s statement comes on the back of an ongoing investigation by Malaysia’s Anti-Corruption Commission (MACC) into an alleged RM2.5 billion money laundering scheme involving IJM.
Two names linked to the firm had been named as persons of interest: IJM chairman Tan Sri Krishnan Tan Boon Seng and company adviser Seow Wah Chong.
IJM distanced itself from Seow, saying that the individual referred to as “company adviser” was “in the past, engaged on a professional basis to provide advisory services in relation to a limited number of corporate transactions.”
IJM said its chairman met MACC officers and continues to cooperate fully with authorities.
Other IJM personnel requested to provide information are also cooperating as part of the process.
Meanwhile, MACC chief commissioner Azam Baki confirmed the probe, saying “if there is a case, we will proceed with investigations”.
News portal Scoop led the charge with its news break on the MACC probe, which triggered widespread media coverage.
The news affected IJM shares, with Bursa suspending intraday short selling for the remainder of the trading day on Monday.
Bursa eventually lifted the suspension, but the negative sentiment around IJM lingered, with shares closing 3.4% lower at RM2.56 today.
For background — on the probe as well as the political economy around Malaysia’s construction sector — this morning’s newsletter is a good read 👇🏽
