NexG Issue: Abu Hanifah Noordin Urged to Clarify Position to Board, Corporate Accountability Highlighted
KUALA LUMPUR, April 6 — NexG Bhd chief executive officer Abu Hanifah Noordin has been urged to provide a comprehensive explanation to the company’s board of directors regarding ongoing issues affecting the organisation, particularly the RM303.7 million expenditure under scrutiny.
Ahmed Razman Abdul Latiff of Putra Business School stressed that transparency and accountability are fundamental principles in corporate governance.
He said the CEO is responsible for ensuring that all relevant information is communicated clearly to the board, which in turn is accountable to shareholders.
“The CEO reports to the board, and the board answers to shareholders. This chain of accountability is essential in any organisation,” he said.
Shareholders Entitled to Full Disclosure
Ahmed Razman noted that shareholders have the right to seek clarification on issues that may affect the company’s performance and value.
He said management and the board should organise briefings or engagement sessions if investors request explanations.
“Shareholders are the owners of the company, and they have every right to know what is happening. Clear communication is key to maintaining their confidence,” he added.
Transparency Prevents Speculation
He warned that failure to provide adequate explanations could lead to speculation and damage the company’s reputation.
Maintaining transparency, he said, is critical, particularly when large financial sums are involved.
Board’s Role in Governance
Ahmed Razman also highlighted the board’s role as a bridge between management and shareholders, ensuring that important information is conveyed effectively.
He said the board must not only oversee operations but also ensure proper communication with stakeholders.
National Interest Considerations
On whether the issue should be publicly addressed due to potential national implications, Ahmed Razman said it depends on stakeholder demands.
However, he acknowledged that the matter becomes more sensitive if it involves contracts related to national documents such as MyKad.
Concerns Raised by Anti-Corruption Watchdog
Earlier, Malaysian Corruption Watch (MCW) raised concerns over reports that Victor Chin Boon had allegedly left the country while investigations were ongoing.
Its president Jais Abdul Karim said the situation raises questions about legal compliance, internal controls, and the effectiveness of oversight mechanisms.
-wilayah.com.my
