Zakaria still FGV president, chief executive officer, says a source

KUALA LUMPUR: Datuk Zakaria Arshad is still Felda Global Ventures Holdings Bhd’s (FGV) president and chief executive officer (CEO) and speculation of his replacement reported by several media is premature.

“FGV still has Zakaria as its president and CEO although he is on leave, pending a domestic inquiry,” a source told NST Business.

“It’s premature to assume that there might be an appointment of new CEO for FGV, replacing Zakaria,” said the source.

In its latest filing to the stock exchange, FGV said Zakaria has until tomorrow noon to submit his showcause letter to the board, despite his appeal for an extension until July 30.

Zakaria had submitted his request for more time to submit a showcause letter to the newly-appointed acting FGV chairman Tan Sri Sulaiman Mahbob, who is also an FGV board member.

The showcause letter relates to the long-outstanding debt of Safitex Trading LLC with Delima Oil Products Sdn Bhd.

Earlier, Zakaria, in a letter to former FGV chairman Tan Sri Isa Samad, denied that he had violated the corporate code of governance.

In a letter dated June 5, Zakaria stated that the paying process and the credit conditions used by Delima were already in place, well before he became FGV chief executive officer in April last year.

Zakaria had soon after invited the Malaysian Anti-Corruption Commission to investigate allegations concerning mismanagement and abuse of power in FGV.

Since June 6, FGV board suspended Zakaria, along with three other senior executives, amid an internal probe into alleged irregularities in business dealings between Safitex and Delima Oil Products, an FGV subsidiary.

“All the documents requested were also granted and given to him today,” FGV announced last Friday, adding that the board is only willing to give him a second and final opportunity until tomorrow noon to submit his reply.

Suspended chief financial officer Ahmad Tifli Mohd Talha, meanwhile, gave his reply last Tuesday to a similar showcause letter.

According to FGV, all four senior executives will continue to be on leave of absence until further notice. Ooi Tee Ching