Why was the hiring of 25 employees deemed suspicious by the court?

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Court Upholds High Court Ruling on Suspicious Hiring Practices by Former MARA Corp CEO

The Court of Appeal has affirmed the High Court's decision, finding the hiring of 25 employees by the former MARA Corporation group CEO, Datuk Badlisyah Abdul Ghani, to be suspicious. This suspicion stemmed from the exceptionally short timeframe in which these hires were made, occurring within just two weeks of his own commencement date in September 2020. The court determined that the manner, timing, and haste of these appointments fell outside the reasonable scope of conducting MARA Corporation's business in good faith.
Hasty Hiring Within Two Weeks of CEO's Start

The court highlighted that the hiring of 25 employees was completed within a two-month period, with all appointments concentrated within the initial two weeks of Datuk Badlisyah's tenure, which began on September 8, 2020. This compressed timeline was a significant factor in raising concerns about the legitimacy of the hiring process.
Lack of Board Approval and Good Faith

A key finding was that the former CEO failed to bring the hiring of these 25 individuals to the attention of the Board of Directors (BOD) for their approval. The court concluded that the timing, haste, and surreptitious nature of these actions could not be reconciled with the expectation of conducting MARA Corporation's business in good faith.
Financial Impact on MARA Corporation

The appellate court agreed with the High Court's assessment that the hiring of these 25 employees resulted in a financial impact on MARA Corporation. This finding was supported by the evaluation of contemporaneous documents and oral evidence presented during the proceedings, which led the High Court judge to allow MARA Corporation's claim.

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Why was the hiring of 25 employees deemed suspicious by the court?

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