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Kontena Nasional sues its former CEO

May 16, 2018 11:20 AM
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PETALING JAYA: Kontena Nasional Bhd has filed a lawsuit against its former CEO, Hood Osman.

Kontena Nasional, an indirect subsidiary of MMC Corp Bhd, is claiming from the defendant, among others, damages in the sum of RM66.59 million, general damages, full indemnity against any claims arising from the transactions, and interest and costs.

Kontena Nasional's claim is premised primarily on breach of the defendant’s employment contract with Kontena Nasional, fraud and various breaches of duty of care under common law and the Companies Act 2016, MMC said in a stock exchange filing today.

MMC said the legal action taken by Kontena Nasional, which is in the business of transport and logistics services, is not expected to have any significant financial and operational impact on the MMC group for the financial year ending Dec 31, 2018.

In late 2014, Hood was charged in the Sessions Court with criminal breach of trust (CBT) of company's funds amounting to RM9.9 million, to which he pleaded not guilty.

He claimed trial to committing CBT of the funds belonging to Kontena Nasional by issuing eight cheques and making two telegraphic transfers to a logistics company belonging to his friend. As at press time the outcome of the trial could not be ascertained.

Kontena Nasional is a subsidiary of NCB Holdings Bhd, which was taken private by MMC following a mandatory general offer.

On Bursa Malaysia today, MMC closed 1.7%, or 3 sen, lower at RM1.73 on volume of 1.3 million shares.


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