ZAKARIA Arshad, the group president and CEO of Felda Global Ventures Holdings Bhd (FGV), and group chief financial officer Ahmad Tifli Mohd Talha have been instructed to go on forced leave with immediate effect, FGV told Bursa Malaysia in an announcement today.

“FGV will continue its business as usual. In the interim, a Board Executive Committee, comprising of two FGV directors, Dr Omar Salim and Mohd Zafer Mohd Hashim, together with Azman Ahmad (Logistics Cluster chief) will take over the responsibility to perform the functions of the group president and CEO.

“The board has also appointed group financial controller (plantation sector) Aznur Kama Azmir as the interim group chief financial officer,” said the announcement.

Both men were asked to relinquish their positions pending an investigation into the delayed payment by Afghan company Safitex to FGV subsidiary Delima Oil Products Sdn Bhd (DOP).

Reports said Zakaria received a letter today, signed by chairman Isa Samad, informing him that he has been relieved of all duties in FGV and its subsidies indefinitely.

He told journalists that he would not take legal action against FGV at this moment.

“Not at this stage. I would have to take to reflect on the matter first,” NST Online quoted him as saying.

“I will have to defend myself,” he said outside Menara Felda today.

BH Online quoted Zakaria as saying that the Malaysian Anti-Corruption Commission should investigate FGV.

“I, too, am ready to be investigated, and urge MACC to investigate FGV so that any wrongdoing in the company can be uncovered.

“In this way, justice will be served,” he said.

FGV share price was down 7 sen to RM 1.66 a share at lunch time. 

The NST had earlier reported that Zakaria had resisted an instruction to resign.

Zakaria had written to Isa on Monday denying any wrongdoing  and refused to step down.

He said he had not contravened corporate practices by allowing Safitex’s purchase without a letter of credit, which led to the delayed payment. .

He said the payment process for Safitex was approved and implemented by the previous CEO, and the Afghan company has been a DOP client for 20 years with a good credit track record.

The payment delay, according to Zakaria, was also due to the Safitex owner unable to return to Dubai until the end of this month to clear the payent

He said DOP was making effort to recover the outstanding payment from Safitex, including through legal action.

“As the president/CEO since April 1 2016, it is difficult for me to micromanage all the subsidiaries under FGV including DOP, and as a whole, I should not be held responsible for issues of unsettled debts. In addition, the amount of payment owed by Safitex is less than 0.2% of FGV’s total earnings,” Zakaria said in the letter. – June 6, 2017.