MMC Corporation, which wholly owns Malaysia's biggest port operator, told staff in an internal memo that Sultan Ahmed bin Sulayem was appointed executive chairman of its ports unit for his expertise and proven track record, after a public outcry over his alleged links to the late Jeffrey Epstein.
The memo, which was reviewed by Reuters, was sent to staff by the chief executive of MMC Corporation. It said Emirati Bin Sulayem's appointment to MMC Ports was in line with the parent company's mission to elevate its businesses to international standards of excellence and competitiveness.
Reuters exclusively reported in July that Bin Sulayem would take control of MMC Ports, five months after his resignation from Dubai's DP World amid scrutiny over his alleged ties with financier Epstein, a convicted sex offender who died in a jail cell in 2019.
MMC Ports operates seven ports along the Malacca Strait, one of the world's busiest shipping lanes.
The appointment has raised questions about governance at a company that controls access to one of the world's most vital shipping corridors. MMC Ports' planned stock market listing — which could have been Malaysia's biggest in more than a decade — has stalled.
"He brings with him a proven track record of driving growth, enhancing operational excellence and forging strategic international partnerships," chief executive Nazrul Mansor said in the memo, without mentioning concerns raised over Bin Sulayem's links to Epstein.
With the appointment, MMC Ports would progressively strengthen its organisation, including with the establishment of a new senior management team, Nazrul added.
It was not immediately clear when the memo, which was undated, was issued. A spokesperson for MMC Corp and its companies did not immediately respond to an emailed request for comment.
Documents published by the U.S. Department of Justice suggest a close relationship between Bin Sulayem and Epstein for more than a decade after the late financier's conviction in 2008 on prostitution charges involving an underage girl.
Reuters was not able to independently verify the allegations in the files. Being named in the files is not evidence of criminal activity.
Bin Sulayem has not publicly commented on any links with Epstein and could not be reached for comment.
MMC PORTS 100% MALAYSIAN-OWNED, MMC CORP CEO SAYS
Bin Sulayem's appointment to MMC Ports had triggered outrage on social media, with many users questioning his suitability.
A group of 31 civil society groups also urged Malaysian billionaire tycoon Syed Mokhtar Al-Bukhary, who holds a controlling stake in MMC Corp, to revoke the appointment, citing geopolitical and financial risks.
Malaysia's transport minister said last month in response to the appointment that the government cannot interfere in the management of private firms, stating that it can only regulate the shareholding structures of companies. MMC Ports' concession agreements require the company to be at least 51% Malaysian-owned.
MMC's Nazrul said in the memo MMC Ports was a 100%-owned unit of MMC Corp and that it will always "remain a Malaysian company, guided by Malaysian values, serving Malaysian interests, while competing confidently on the global stage."
MMC Ports had been expected to pursue what could have been Malaysia's biggest IPO in more than a decade last year, but Reuters reported in October that the company had delayed the planned listing.
Malaysian financial daily the Edge reported on Thursday, citing sources, that MMC Corp had told its advisers to halt the listing process completely. Reuters was unable to immediately verify the report.
Reuters
