Alam Maritim CEO charged: $7.8m fraud in vessel charters
Azmi Ahmad faces two counts of fraud over alleged discrepancies in offshore vessel charter rates totalling $7.8m.
The chief executive of Malaysian offshore support vessel (OSV) operator Alam Maritim Resources, Azmi Ahmad, has been formally charged with two counts of fraud related to vessel charter agreements. The case, heard in Kuala Lumpur’s Sessions Court, centres on alleged discrepancies between initial work orders and subsequent contracts signed with entities linked to Malaysia’s Muslim pilgrimage fund, Lembaga Tabung Haji.
Azmi, who pleaded not guilty to both charges on September 10, faces accusations of concealing the true charter rates in two separate agreements. The first charge involves a work order dated August 24, 2023, which listed a daily rate of RM80,500 ($19,800).
However, prosecutors claim Azmi induced TH Alam Management’s principal officer, Iskandar Mohd Zaffa, to sign a BIMCO Supplytime 2017 contract at a lower rate of RM70,000 ($17,200) per day. The second charge relates to a January 15, 2024, work order with a stated rate of RM110,000 ($27,000), while the final contract was signed at RM78,000 ($19,300).
The charges were filed under Section 417 of Malaysia’s Penal Code, which carries a maximum penalty of five years in prison, a fine, or both. Azmi was granted bail of RM300,000 ($74,000) and ordered to report to the Malaysian Anti-Corruption Commission (MACC) every three months. His next court appearance is scheduled for November 18.
The case stems from a broader MACC investigation into financial irregularities linked to Lembaga Tabung Haji. Azmi was among seven individuals detained in August as part of the probe but was later released and resumed his duties at Alam Maritim Resources. The company has maintained a long-standing partnership with the pilgrimage fund since 2009, collaborating through joint ventures such as TH-Alam Holdings and TH Alam Management, as well as the shipowning entity Alam-JV DP2.
Despite the legal proceedings, Alam Maritim Resources continues to expand its operations. Last week, the company announced a $19.8 million deal to acquire a fifth OSV, aiming to support a subsea orderbook valued at RM1.55 billion ($368 million). The new vessel is expected to enhance the company’s capacity to fulfil contracts in Malaysia’s offshore energy sector.
Broader implications for the offshore sector: Alam Maritim
The case underscores the complexities of charter agreements in the offshore support vessel industry, where discrepancies between initial work orders and final contracts can raise legal and financial concerns. While the court has not identified the specific vessel or petroleum company involved, the charges highlight the scrutiny faced by industry players in contractual negotiations.
Alam Maritim Resources has not commented further on the case, but the company’s ongoing expansion suggests confidence in its operational future. The outcome of the legal proceedings could set a precedent for how similar disputes are handled in Malaysia’s offshore sector.
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