Hornbill Unleashed

June 7, 2017

After CEO’s suspension, FGV says will cooperate if MACC probes firm

Filed under: Politics — Hornbill Unleashed @ 8:01 AM

Felda Global Ventures Holdings Berhad (FGV) chairman Tan Sri Isa Samad said the company would cooperate if the Malaysian Anti-Corruption Commission decided to investigate the plantation firm. — Bernama picFelda Global Ventures Holdings Berhad (FGV) will cooperate if the Malaysian Anti-Corruption Commission (MACC) decides to investigate the plantation firm, its chairman Tan Sri Isa Samad said today.

Speaking shortly after FGV president and chief executive officer Datuk Zakaria Arshad was suspended today, Isa noted that the company is currently carrying out its own internal audit on alleged irregularities in certain transactions between FGV unit Delima Oil Products Sdn Bhd and Afghan company Safitex.

“It is up to MACC if it wants to come in, we have no problem with it coming in,” he told reporters here at Menara Felda.

He said Zakaria should lodge a report with MACC if he felt there were any irregularities.

“If MACC wants to investigate, no one can stop it…If Datuk Zakaria wants to call for an investigation, then investigate.

“MACC, any agency that investigates, we can give our cooperation, no problem,” he said.

“So far don’t know of MACC being involved but Zakaria wants to refer to MACC, that is up to him. On our side, the investigation is done by the IA (internal audit committee),” he later said.

Isa explained that an internal probe by the internal audit committee was launched after external auditors PricewaterhouseCooper (PwC) detected some irregularities.

Defending the FGV board’s decision to suspend Zakaria at this point of time, Isa said that it was the usual procedure to ask him to take leave of absence to allow the internal audit to be carried out without interruption.

“For the board, we are of the view that action has to be taken on this matter so that we are not accused of covering up that wrong. We are not a Sdn Bhd company but a listed company,” he said.

Earlier today, FGV’s board announced that the suspended Zakaria’s duties will be taken on for now by a newly-set up Board Executive Committee — composed of the firm’s directors Datuk Omar Salim and Datuk Mohd Zafer Mohd Hashim, together with the head of its logistics cluster Azman Ahmad.

It said FGV chief financial controller Ahmad Tifli Mohd Talha has also been asked to go on leave of absence pending the same probe and will be replaced in the interim by the palm oil giant’s plantation sector financial controller Aznur Kama Azmir.

The FGV board’s decision comes a day after Zakaria was reported refusing an instruction allegedly from Isa to resign from the company following a May 31 FGV board meeting concerning delayed payments owed to Delima by Safitex.

Zakaria has denied breaching corporate governance practices to allegedly allow Safitex to purchase palm oil products without a letter of credit, which reportedly resulted in delayed payments to the FGV unit.

In an interview today with local papers New Straits Times and Berita Harian that was published at noon, Zakaria said the MACC should probe both FGV and himself to determine if there were any discrepancies in dealings by him, the management or any of the superiors.

Zakaria reportedly said he would resign from his two FGV positions if the authorities found that he was involved in the delayed payment by Safitex, but would pursue legal action if sacked without given the chance to defend himself.

Zakaria who has been in service to the Felda Group since 1984 was appointed FGV CEO on April 1, 2016 to replace Datuk Mohd Emir Mavani Abdullah.

Source : The Malay Mail Online by IDA LIM



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