In a police report, Ibrahim & Sons Engineering Sdn Bhd (IBSE) director Khaeromze Ahmad dismissed Steel Hawk’s allegations of breach of trust, misappropriation of funds, and fraudulent misrepresentation linked to a collaboration involving projects for Tenaga Nasional Bhd (TNB).
“I deny the claim as our company at all material times complied with the terms of the agreement,” Khaeromze said in the report filed at the Johor Selatan police headquarters yesterday.
Besides IBSE and Khaeromze, Steel Hawk also named Always Ahead Engineering Sdn Bhd and two others: Zafrin Ibrahim and Zulkflee Ibrahim. It also made an announcement on Bursa Malaysia about the suit and the allegations.
Khaeromze claimed that the problems between the parties began when Steel Hawk asked IBSE to sign a document stating the balance of payment as at Dec 31 last year in an email sent on Feb 16.
Khaeromze said his company rejected the request on April 17, as the amount stated did not match IBSE’s records. IBSE subsequently sent a letter to terminate its agreement with Steel Hawk.
He said Steel Hawk asked it to withdraw the termination letter with threats of false allegations, which IBSE formally declined while denying the claims.
“Steel Hawk then started making unfounded allegations against IBSE, including reports to the Malaysian Anti-Corruption Commission and TNB to exert pressure.
“The allegations on the Bursa Malaysia website are also unfounded and constitute excessive and malicious allegations. They have tarnished not only my image but also that of IBSE’s credibility in the eyes of banks, TNB, and the industry,” Khaeromze said in the report.
Bursa Malaysia announcement
In the Bursa filing on Tuesday, Steel Hawk said it initiated legal action against IBSE and four others over alleged breaches of trust, misappropriation of funds, and fraudulent misrepresentations linked to an engineering collaboration involving projects for TNB.
It said the group was seeking at least RM14.39 million in the lawsuit, filed by wholly-owned unit Steel Hawk Engineering Sdn Bhd, against the defendants.
Steel Hawk said the suit stemmed from a contract signed in July 2025, under which IBSE was to act as the main contractor for several TNB-related projects, while Steel Hawk Engineering would provide working capital and funding in return for repayment and profit-sharing.
The group claimed that between 2025 and 2026, Steel Hawk Engineering paid RM11.63 million to IBSE and Always Ahead Engineering, based on representations made by the defendants.
“It was an express term of the agreement that all payments received from TNB were to be treated as trust monies and deposited into designated trust account(s) and/or escrow account(s),” it said.
Steel Hawk claimed the defendants failed to ensure that payments from TNB were remitted into the designated accounts, leading to the power firm allegedly making payments into unauthorised accounts, including a sum of RM2.76 million.
The group further claimed that certain TNB purchase orders and a purported letter of award relied upon by the defendants were false, non-existent and/or had been cancelled.
The reliefs sought include declarations that the agreement was unlawfully terminated, that monies received from TNB are held on trust for Steel Hawk Engineering, and that the company may seek a novation or assignment of the agreement.