Posted by arv18 > 2013-05-10 13:23 | Report Abuse

It is not often that a listed company admits being involved with bribery, but Bina Puri Holdings Bhd seems to have done exactly that. In a court case in Singapore between ANC Holdings (plaintiff) and Bina Puri (defendant) a sum of S$ 4.6 million (more than RM 11 million) was claimed being 5% of the total value of a project in Saudi Arabia. The plaintiff claimed it fulfilled its obligations. I recommend the readers to read the whole document. The word "bribe" is mentioned 82 times. "The defendant's witnesses gave evidence that it had been the joint intention of both the plaintiff and the defendant in entering the agreement that the plaintiff's assistance to the defendant's subsidiary would consist of paying bribes to secure the projects." " ..... it is a serious thing to admit an intention to secure contracts by paying bribes. It is especially serious - legally and reputationally - for a public listed company to do to." (page 72) "I am satisfied that the parties' common intention in entering into the Agreement was that the plaintiff would procure the Projects for Bina Puri Saudi by paying bribes." "... the result is that the plaintiff cannot enforce any claim under the agreement." "I therefore dismiss the plaintiff's claim." "I decline to award the defendant any cost in the present action. When the parties are in pari delicto - as they are here - the parties' losses lie where they fall." (in pari delicto: in equal fault) Bina Puri has just filed its annual audited accounts 2012. The following paragraphs deal with the above court case, without mentioning about the bribes: It will be interesting to see how the top management of the company will deal with the above case. Will the Malaysian authorities take any action?