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Tanjung Offshore suspends three officials for breaches

Tanjung Offshore suspends three officials for breaches
After an internal inquiry Tanjung Offshore has suspended three of its officials due to possible conflicts of interest and breaches of fiduciary duty, procedure and authority, the company said.

Following the recommendations of an independent committee, Tan Kean Soon and Muhammad Sabri Ab Ghani have been suspended from their executive functions and roles with immediate effect, but will remain as directors of the company. Non-independent director Tan is a paid advisor of Tanjung, while Sabri is executive director.

The third official, Harzani Azmi, has had his services as a paid advisor to the company suspended with immediate effect, and his nomination to the board revoked.

“The possible conflicts of interest and breaches of fiduciary duty may have resulted in, among others, loss of business opportunity and potential income stream related to the Bourbon deal,” said Tanjung, confirming earlier speculation. A much anticipated reverse takeover deal by Bourbon Offshore Asia Pacific was abruptly mutually terminated in December 2014, following changes in the prevailing economic, financial and market conditions including declining oil prices.
Tanjung added that the possible conflicts and breaches may also have resulted in disadvantageous and lopsided terms for a contract under negotiation, and potential  future loss related to a Construction Work Request (CWR) project worth about MYR250m ($68.8m).
"These possible conflicts and breaches also may have been the cause for the dissemination of confidential company information to third parties related to both the Bourbon deal and the CWR project. These could also be potentially jeopardising the company’s relationship with CNPC Offshore Engineering Co, (CPOE) in China in on-going negotiations for a drilling contract in Malaysia," Tanjung further said.