RM3.4m bill stands for former MARA Corp CEO after appeal fails over 25 hires

The Court of Appeal has ruled in favor of the High Court's decision to order former Majlis Amanah Rakyat Corporation Sdn Bhd (MARA Corporation) CEO Datuk Badlisyah Abdul Ghani to compensate the company RM3.4 million for breaching his responsibilities. The three-judge panel, consisting of Justices Wong Kian Kheong, Ahmad Kamal Md Shahid, and Ahmad Fairuz Zainol Abidin, denied Badlisyah's appeal and upheld the earlier judgment.

In addition to the financial penalty, Badlisyah was also ordered to pay RM50,000 in costs. Justice Ahmad Kamal stated that the court found no error worthy of appellate intervention, as the High Court judge had correctly ruled in favor of MARA Corporation. The court concluded that Badlisyah had failed to act in the best interests of the corporation during his tenure as CEO.

He should have ensured that the hiring of 25 employees was approved by the Board of Directors (BOD) before proceeding with their recruitment. The rapid hiring of these employees within a two-month period, spanning just two weeks from Badlisyah's appointment on September 8, 2020, raised suspicions. The court affirmed that this swift action was not within the reasonable scope of running MARA Corporation in good faith.

The hiring of these 25 employees reportedly caused financial strain on the company. On May 20, 2024, the High Court had previously ordered Badlisyah to pay MARA Corporation RM2,728,673.82 and RM739,541.60, as well as indemnify the corporation against expenses related to industrial relations actions involving former employees. Badlisyah assumed his role as MARA Corporation's group CEO on September 8, 2020, and was subsequently suspended from duty on November 19, 2020.

The corporation filed a lawsuit against him, alleging breaches, including hiring employees without proper BOD approval and misleading the Board Nomination and Remuneration Committee (BNRC) regarding four employees.