Daud Bakar seeks RM21.5mil over alleged misuse of name, reputation

Prominent Islamic finance figure Daud Bakar has issued two letters demanding RM10.75 million each from two individuals linked to an investment scheme over the alleged unauthorized use of his name and professional reputation. Daud, who previously chaired the shariah advisory councils of Bank Negara Malaysia and Securities Commission Malaysia, delivered the notices on August 18 to former Energy Eco Bhd CEO Norliza Tajudin and AUF MBZ Consortium PLT founder Mahadi Badrul Zaman.

According to Daud, his name, title and professional standing were exploited without his consent to enhance the scheme's credibility and attract investors. Norliza and Mahadi were given 14 days to respond; otherwise, Daud's lawyers would initiate legal proceedings. Daud, appointed EEB chairman and director in July 2021, emphasized that he played no role in the company's day-to-day operations, finances or management of investor funds.

He stated that these responsibilities were managed by EEB's management, with AUF serving as the scheme's marketing and distribution agent. Daud claims he was unaware of the money raised, its utilization, or how returns were allocated to investors. In his notice to Norliza, he alleged that she and EEB's management used his name and reputation to gain investor confidence.

In a separate notice to Mahadi, Daud accused him of aggressively promoting his involvement in EEB to bolster the scheme's credibility. Daud acknowledged signing an undertaking on January 27, 2022, agreeing to pay RM4.6 million in outstanding payments in installments, later adding RM750,000 from his personal funds to safeguard his reputation and professional standing.

He now seeks RM750,000 from Norliza and Mahadi, along with RM10 million each in damages for the alleged harm to his reputation and related expenses. The dispute unfolds amid separate criminal proceedings against Daud, Norliza and Mahadi linked to EEB and the investment scheme. On May 11, Daud and Norliza pleaded not guilty to seven counts of criminal breach of trust involving RM10.55 million, while Daud also faces charges of abetting unlicensed securities dealings.