How did the alleged CBT involve kaolin and silica quartz?

Question

Accepted Answer

Encorp Berhad CEO Charged with Criminal Breach of Trust Involving Kaolin and Silica Quartz Transactions

Encorp Berhad CEO Hazurin Harun faced two charges of criminal breach of trust (CBT) amounting to RM1.05 million, specifically involving transactions related to kaolin and silica quartz. The allegations centre on payments made for mineral deliveries where the stated purpose allegedly differed from the intended use of the funds, constituting a breach of trust.
Misappropriation in Kaolin Mineral Payment

The first CBT charge pertains to a RM350,000 payment made via an Encorp Berhad cheque to LMC Mining Sdn Bhd. This payment was purportedly for the delivery of 20,000 metric tons of kaolin mineral from a mining site in Perak. However, the prosecution contends that this sum was actually intended for the delivery of silica quartz, and the misrepresentation of the mineral type constitutes the alleged CBT. Kaolin, a soft white clay, is widely used in ceramics, paper manufacturing, and as a filler in paints and plastics.
Discrepancy in Silica Quartz Shipment Payment

The second charge involves a RM700,000 online transfer to LMC Mining Sdn Bhd's bank account. This transaction was described as being for a shipment from Lumut Port, Perak, to Nantong, China, and for the rental of a vessel to transport silica sand. Similar to the first charge, the prosecution alleges that this payment was also intended for the delivery of silica quartz, not silica sand, thereby creating a discrepancy between the documented purpose and the actual intended use of the funds. Silica quartz, a hard, crystalline mineral, is a primary component of glass, is used in construction, and serves as an abrasive.
Circumstances Constituting Criminal Breach of Trust

The alleged criminal breach of trust arises from the purported diversion of funds. In a CBT scenario, an individual entrusted with property or funds acts contrary to the terms of their entrustment, causing wrongful loss to another. In this case, Hazurin Harun, as CEO, was allegedly entrusted with Encorp Berhad's funds. The prosecution claims that by authorising payments for kaolin when the goods were meant to be silica quartz, or for silica sand when silica quartz was the intended commodity, he breached the trust placed in him. Such actions, if proven, would imply a deliberate misdirection of company assets for purposes not originally agreed upon, thereby causing potential financial prejudice to Encorp Berhad.

Reading history

Hide →

This history is cleared when the page is closed.

How did the alleged CBT involve kaolin and silica quartz?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends