With
the remand of Iris Corp Bhd deputy MD Datuk Hamdan Hassan following
allegations of corruption by the MACC, it is unclear whether the company
will push through with its restructuring plan in 2017.
As
Iris co-founder and MD Datuk Tan Say Jim has gone on leave since
November 2016, Hamdan took the leading role of the company and had plans
for a major overhaul of the company’s operations, to refocus on the ID
business.
Tan
has been selling down his stake in the company, disposing of a total of
79.6 million shares over the last two weeks of December 2016,
representing an equity stake of approximately 3.54%, bringing his total
holding to 2.882%.
Hamdan
said Iris would return to its roots to strengthen its core trusted ID
business, especially after the non-renewal of its contract to supply
e-passport chips to the Malaysian government in May 2016.
Felda Investment Corp Sdn Bhd is the largest shareholder with a 21.33% stake.
However,
with Hamdan’s suspension of his executive powers, amid the MACC’s
investigations into alleged bribery and abuse of power, it is uncertain
whether the restructuring plan will pull through.
MACC’s
six-day remand order for Hamdan to facilitate the ongoing
investigations, and appointed its COO for trusted ID, Choong Choo Hock,
as acting CEO.
Meanwhile,
the company said the remand order would not have any implication on the
validity of its contract with the government of the Republic of Guinea
nor will it have any implication on the e-passport project.
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