KUALA LUMPUR: Felda Global Ventures (FGV) group president and chief executive officer Datuk Zakaria Arshad will resume his duties on Oct 16, 2017.
In a Bursa filing today, FGV said the decision was made after the conclusion of the domestic inquiry to ensure proper corporate governance.
“The Special Shareholder, The Minister of Finance (Incorporated) has required that the domestic inquiry on FGV Group President/Chief Executive Officer must be carried out in line with integrity, spirit of impartiality of the ongoing inquiry and ensuring proper corporate governance.
“The DI has been carried out with proper internal processes and the findings of the DI were submitted to the Special Shareholder in line with Article 80, of FGV’s Memorandum and Articles of Association. The Special Shareholder has taken time to review the matter.
“After taking into consideration the ongoing FGV transformation program and the GP/CEO’s commitment and assurance to resolve the long outstanding debt of Safitex Trading LLC, the Special Shareholder would like Datuk Zakaria to return as the president and CEO of FGV,” it said in the filing.
In a subsequent statement, FGV chairman Datuk Azhar Abdul Hamid said there is a need for a new management structure to strengthen the organisation going forward and to provide better focus towards achieving FGV’s strategic plans.
“The board composition will also be enhanced with the appointments of related subject matter experts to the board. The board will make the related announcements in due course,” FGV said.
Azhar reiterated his commitment to turn around and bring the company to greater heights despite the various challenges faced at this point in time.
“My immediate priorities are to improve operational and financial performance of our core business and ensure sustainable growth going forward.
“Being one of the biggest palm oil plantation companies, FGV must aspire to be the industry leader in terms of productivity and financial returns, so any factors hindering us from achieving these objectives must be addressed immediately,” he said.
On June 6, Zakaria and FGV group chief financial officer Ahmad Tifli Mohd Talha were suspended with immediate effect, following questions raised in over the company’s dealings with Safitex Trading LLC over the latter’s outstanding debt.
Zakaria said he received a letter signed by (then) chairman Tan Sri Isa Samad informing him that he has been relieved of all duties in FGV and its subsidiaries indefinitely.
On July 3, The board of directors of FGV Bhd referred the cases to a domestic inquiry panel. FGV said the board made the decision after evaluating and considering both of their replies to the show-cause letters and the process was expected to take about two months.