PUTRAJAYA, Aug 17 — The Court of Appeal has upheld the High Court’s decision in ordering Majlis Amanah Rakyat Corporation Sdn Bhd (MARA Corporation) former 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-man bench comprising Justices Datuk Wong Kian Kheong, Datuk Ahmad Kamal Md Shahid and Datuk Ahmad Fairuz Zainol Abidin had dismissed Badlisyah’s appeal and affirmed the High Court’s decision.
The court also ordered Badlisyah to pay RM50,000 in costs.
In the grounds of judgment dated Aug 12, this year, Justice Ahmad Kamal said the court found that there was no appealable error warranting any appellate interference in the case.
“The High Court judge had correctly allowed MARA Corporation’s claim after evaluating the contemporaneous documents and oral evidence of the witnesses,” he said.
Justice Ahmad Kamal said based on evidence produced before the court, Badlisyah had failed to discharge his duties in the best interest of MARA Corporation as the group CEO through his conduct.
He said as the then group CEO, Badlisyah should have ensured that the hiring of 25 employees was brought to the attention of the Board of Directors (BOD) for their approval before he proceeded to hire them.
Justice Ahmad Kamal also said the short span of two months of hiring the 25 employees within just two weeks from commencement of his employment on Sept 8, 2020 sparked grave suspicion.
“The timing, haste and surreptitious manner of the hiring of 25 employees could not have been made within the reasonable scope of carrying on the business of MARA Corporation in good faith,” he said.
Justice Ahmad Kamal further said that the appellate court agrees with the High Court’s findings that hiring the 25 employees had caused 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 to indemnify MARA Corporation against expenses arising from Industrial relations actions involving former employees.
Badlisyah was appointed MARA Corporation group CEO on Sept 8, 2020, and he was suspended from duty on Nov 19, 2020.
The company filed a suit against Badlisyah alleging that he had committed several breaches, including hiring 25 employees without approval of the BOD and misrepresentation to the Board Nomination and Remuneration Committee (BNRC) concerning four employees. — Bernama
Date: 17 August, 2026 8:00 pm
Source: Malay Mail
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