Bursa Malaysia Securities has publicly reprimanded former listed company Ireka Corporation Berhad and fined seven of its former directors a combined RM425,000 over breaches related to disclosure failures involving a RM1.07 billion Pan Borneo Sabah highway subcontract project.
The Exchange said Ireka breached several provisions under the Main Market Listing Requirements by failing to ensure accurate and sufficient disclosures relating to a letter of award (LOA) received in October 2024, delays in announcing the failure to execute an Articles of Agreement (AOA), and the eventual termination of the contract.
The regulator said the company’s announcement dated Oct 8, 2024 concerning the LOA awarded by Gammerlite Sdn Bhd to Ireka’s wholly owned subsidiary, Shoraka Construction Sdn Bhd, omitted material facts concerning the project structure and associated risks.
The RM1.07 billion subcontract involved works for the Pan Borneo Sabah Phase 1B project connecting Kampung Lomou Baru to Kampung Toupus. Bursa said the announcement failed to disclose that the project involved a multi-level subcontracting arrangement and that the LOA was contingent on approvals from the Malaysian Public Works Department and MTD Construction Sdn Bhd, as well as funding arrangements.
According to Bursa, the omission deprived investors of a complete understanding of the project risks, including the potential termination of the LOA if approvals and financing were not secured.
Bursa also found that Ireka failed to immediately disclose that the AOA was not executed within the stipulated 45-day period and subsequent extended deadlines. The company further failed to promptly announce the loss of the LOA following the termination of a project operation management agreement between MTD Construction and Gammerlite on June 30, 2025.
Although Ireka was informed of the termination on July 1, 2025 and later received a termination notice from Gammerlite on July 8, 2025, Bursa noted that the company only announced the matter on July 28, 2025.
Bursa said the LOA was highly material to Ireka as the contract value far exceeded the group’s revenue of RM36.8 million for the financial year ended June 30, 2024.
Among those penalised were former group managing director Datuk Mohd Hasnul Ismar Mohd Ismail and group deputy managing director Chairil Mohd Tamil, who were each fined RM100,000 and publicly reprimanded over multiple breaches.
Former executive director Chow Sung Chek Simon was fined RM75,000, while former non-independent non-executive chairman Tan Sri Mohd Ismail Che Rus was fined RM50,000.
Former senior independent non-executive director Dato’ Azmi Abdullah, former independent non-executive director Shahruladeri Mohamad Adnan, and independent non-executive director Norhaizam Mohammad were also publicly reprimanded and fined.
Bursa said the penalties were imposed after considering the materiality of the breaches, the impact on shareholders and investors, and the roles and responsibilities of the directors involved.
Although Ireka was delisted from Bursa Malaysia on March 10, 2026, Bursa noted that the breaches were committed while the company was still listed on the exchange.
