Kuala lumpur: The Court of Appeal has upheld the High Court's decision requiring former Majlis Amanah Rakyat Corporation Sdn Bhd (MARA Corporation) group chief executive officer (CEO) Datuk Badlisyah Abdul Ghani to pay RM3.4 million to the company for breaching his contractual, fiduciary, and statutory duties. A three-member bench consisting of Justices Datuk Wong Kian Kheong, Datuk Ahmad Kamal Md Shahid, and Datuk Ahmad Fairuz Zainol Abidin dismissed Badlisyah's appeal and confirmed the High Court's ruling. Additionally, the court ordered Badlisyah to pay RM50,000 in costs.
According to BERNAMA News Agency, the grounds of judgment dated August 12 this year reveal that Justice Ahmad Kamal found no appealable error that would warrant appellate interference in the case. He noted that the High Court judge had correctly permitted MARA Corporation's claim after assessing the contemporaneous documents and oral evidence presented by the witnesses.
Justice Ahmad Kamal stated that evidence showed Badlisyah failed to fulfill his duties in the best interest of MARA Corporation as the group CEO. He emphasized that Badlisyah should have sought the Board of Directors' (BOD) approval before hiring 25 employees. The rapid hiring of these employees within two weeks of his employment commencement on September 8, 2020, raised serious concerns regarding the timing, speed, and covert manner of the hiring process.
The appellate court agreed with the High Court's findings that the hiring of these employees had a financial impact on MARA Corporation. On May 20, 2024, the High Court ordered Badlisyah to pay RM2,728,673.82 and RM739,541.60 to MARA Corporation and indemnify the company against expenses from industrial relations actions involving former employees. Badlisyah, who was appointed MARA Corporation group CEO on September 8, 2020, was suspended from duty on November 19, 2020. The company alleged that Badlisyah committed various breaches, including hiring employees without BOD approval and misrepresenting details to the Board Nomination and Remuneration Committee (BNRC) concerning four employees.