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SHAH ALAM - Islamic finance expert Tan Sri Dr Mohd Daud Bakar is demanding almost RM11 million from two individuals over the alleged unauthorised use and exploitation of his name and reputation in connection with an investment scheme operated by Energy Eco Berhad (EEB).
In a statement on Wednesday, Daud who is facing charges over unauthorised securities activities and embezzlement said he had issued separate notices of demand on Aug 18 to EEB chief executive officer Datuk Norliza Tajudin and businessman Datuk Seri Mahadi Badrul Zaman who is also the founder of AUF MBZ Consortium PLT.
Daud claimed that his name and reputation had been used without his knowledge or consent to enhance the credibility of EEB's investment scheme and induce investors to participate.
He said although he was chairman and a non-executive director of EEB, he had never been involved in the company's daily management, financial affairs, promotion of investments, negotiations with investors or handling of investor funds.
He claimed that Norliza and EEB's management were responsible for the company's operations, while Mahadi had been appointed as the marketing and/or distribution party for the investment scheme.
He said he only became aware of the alleged exploitation of his name and reputation after EEB defaulted on payments and investors began contacting him.
Daud claimed that he had subsequently used RM750,000 of his own funds to preserve his name and professional standing.
He is seeking reimbursement of the RM750,000, RM10 million in compensation for alleged damage to his reputation, as well as indemnification for all related costs and expenses.
“Both Norliza and Mahadi were each given 14 days to provide a satisfactory response, failing which Tan Sri (Daud) has instructed his solicitors to commence legal proceedings against them," the statement read.
Daud was represented by solicitors from Messrs Shahrul Hamidi and Haziq.
On Feb 23, Mahadi was charged at the Kuala Lumpur Sessions Court with two charges relating to unlicensed capital market activities under section 58(1) of the Capital Markets and Services Act 2007 (CMSA) between June 14, 2021 and Aug 9, 2023, and between Sept 3, 2021 and Feb 15, 2024.
On the same day, Daud who is also the former chairman of the Shariah Advisory Council of Bank Negara Malaysia was charged with abetting unlicensed securities dealing between June 14, 2021 and Aug 9, 2023.
According to the charge, Daud, acting as a representative of EEB, was alleged to have abetted AUF MBZ Consortium PLT in carrying out a regulated activity, namely dealing in securities, despite the company not holding a Capital Markets Services Licence and not being a registered person for such activity.
On May 11, he was charged again alongside Norliza, with seven counts of criminal breach of trust (CBT) involving RM10.55 million linked to a syariah-compliant glove manufacturing business.
For the first to the seventh charges, they were jointly charged as directors and shareholders of EEB with committing CBT involving money amounting to RM400,000, RM500,000, RM900,000, RM2 million, RM550,000, RM6 million and RM200,000 belonging to Moideen Kunjayu, Koperasi Perumahan Sentul Pasar Kuala Lumpur Berhad, Datuk Dr Mashitah Ibrahim and Myad Kapital Sdn Bhd.
They are charged with dishonestly using the money by breaching the express contract, namely the Shareholder's Advance Agreement dated June 22, 2021, Jan 19, 2022, April 1, 2022, April 27, 2022, Dec 6, 2022, April 5, 2023 and May 12, 2024, involving a sharia-compliant glove manufacturing business.