Mara wins appeal to recover RM6.6mil from businessman
PUTRAJAYA: Majlis Amanah Rakyat (Mara) has succeeded in its appeal to recover RM6.6 million from businessman Naguib Mohd Nor over a failed profit guarantee.
Mara, the Malaysian government agency, has successfully recovered RM6.6 million from businessman Naguib Mohd Nor for a failed profit guarantee. This victory in the Court of Appeal overturned a previous High Court decision that dismissed Mara's claim. The appeal was unanimously decided by judges Datuk Wong Kian Kheong, Datuk Alwi Abdul Wahab, and Datuk Ahmad Kamal Md Shahid.
Naguib was also ordered to pay RM50,000 in court costs. The 2014 Share Sale Agreement between Mara and Strand Aerospace, where Mara invested RM33 million, required Naguib to guarantee a minimum profit. However, Strand Aerospace only made about RM1.82 million and RM1.91 million in profit after tax in 2014 and 2015 respectively, failing to meet the RM21 million and RM21.3 million targets.
As a result, Naguib now owes Mara the RM6.6 million shortfall. The court also determined that Naguib's actions, including moving business activities to another entity he owned, further weakened Strand Aerospace's ability to generate profits and pay dividends, strengthening the case for Mara's claim against him. Mara's rejection of a financing offer from the Malaysian Technology Development Corporation (MTDC) after the profit guarantees were missed was not considered a factor in Naguib's liability.
Mara's legal team included Natalia Izra Nasaruddin, Tengku Nazmi Tengku Anuar, and Mohamed Hamzah Khatri Mohamed Haniff, while Naguib was represented by Ashok K Raman Nair, R. Ganeshnathan, and P. S. Tamil Arsoo.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Mara wins appeal to regain RM6.6mil from head of aerospace association freemalaysiatoday.com
