FGV CEO given leave of absence pending investigation into payments by subsidiary

 |Jun 6, 2017

The board of Felda Global Ventures Holdings Bhd (FGV) has asked Group President/Chief Executive Officer and Group Chief Financial Officer Zakaria Arshad to go on immediate leave due to an investigation into payments by a subsidiary.

Zakaria was appointed CEO on April 1 last year.

“The leave of absence commencing June 6, is pending investigations into certain transactions by Delima Oil Products Sdn Bhd, the subsidiary,” the company said in a filing to Bursa Malaysia today.

FGV, said however, business would continue as usual.

The company said in the interim,  a Board Executive Committee, comprising two directors, namely Omar Salim and Zafer Mohd Hashim, together with the Head of Logistics Cluster Azman Ahmad, would take over responsibilities of the Group President/CEO.

The Board has also appointed Group Financial Controller, Plantation Sector, Aznur Kama Azmir as the Interim Group Chief Financial Officer.

It said further announcements would be made in the event of material developments on this matter.

Meanwhile, Zakaria, in an online video posting by a local newspaper following an interview outside the Felda building here, said he did not expect things to turn out the way it did.

“A board director and the company’s security head handed me a letter asking me to go on leave as Group President/CEO and I had been relieved of all duties.

“(I will take leave) until the FGV Board contacts me,” he added.

He also said he did not have a problem if the process is correctly followed.

‘I saw it coming (the leave of absence). I did not expect it to get to this stage as the issue is not big. I have to face this openly and defend myself,” he added.

As at 12.04 pm, FGV’s share price shed seven sen to RM1.66 with 27.12 million shares transacted.Trading in the share has been halted.

FGV, under Zakaria and Isa’s stewardship, returned to profitability in the first quarter ended March 31, 2017, posting a net profit of RM2.46 million in contrast to the net loss of RM81 million in the same period a year ago.

Revenue grew 15 per cent to RM4.32 billion  from RM3.76 billion. – Bernama