KUALA LUMPUR (Aug 12): Encorp Bhd (KL:ENCORP), in which Felda Investment Corp Sdn Bhd (FIC) owns 67.13%, has suspended group chief executive officer (GCEO) Hazurin Harun with immediate effect.

This suspension is to facilitate an internal investigation process “relating to allegations made involving Malaysian Anti-Corruption Commission, resulting in the powers, authorities and functions vested in him as the GCEO to be suspended” until further announcement by the board, said Encorp in its filing with Bursa Malaysia.

The company did not reveal the details of the allegations, but it confirmed that three of its officers were arrested by the MACC on August 8.

Encorp assured that it will fully support and cooperate with the MACC and is closely monitoring the situation to ensure compliance and integrity.

The group also assured that it will continue business as usual and has appointed group chief financial officer Kamarul Azman Kamarozaman @ Amir as the officer in charge during Hazurin's suspension.

Last Saturday, the MACC confirmed the arrest of three individuals, including a group CEO, for suspected misappropriation of RM1.5 million in funds belonging to a publicly-listed company. Two suspects, a man and a woman aged between 40 and 50, have been remanded for four days until August 12.

According to an MACC source, the suspects were detained between 7pm and 9pm last Thursday while testifying at the Putrajaya MACC office. They were being investigated for irregularities in construction and mining projects valued at about RM80 million.

Preliminary findings suggest their involvement in establishing an unauthorised company for a RM258 million project and embezzling approximately RM3 million in property rental funds.

FIC, wholly-owned by Felda, serves as an investment arm for the agency overseen by the Ministry of Rural and Regional Development.

The company primarily focuses on property development, investment property, construction and concessions.

Shares in Encorp fell 0.5 sen at 26 sen, giving the company a market capitalisation of RM80.75 million.