FGV HOLDINGS: AUDIT REVEALS ‘ADVERSE TRANSACTIONS’ DONE IN PREVIOUS YEARS

Board reviewing findings and seeking legal advice on possible legal recourse

FOUR out of six completed investigations carried out by FGV Holdings Bhd’s forensic audit and internal investigations team in January this year revealed “adverse” transactions executed by the company in the previous years.

The completed audits and investigations were on the acquisition of Asia Plantations Ltd, investment in FGV Cambridge Nanosystems Ltd and the purchase of Troika condominiums.

However, in a statement yesterday, the company did not disclosed details on the “adverse” findings.

The audit and investigation on another transaction was not named by the group in the statement as it is a minor case, FGV spokesperson told NST Business yesterday.

FGV said the board has undertaken internal probes into six more matters which fall into three categories.

They include examining open credit lines, poor purchasing trading practices and weak palm oil sales that had resulted in bad debts of RM100 million, and direct awards of procurement contracts that breach best practices.

It is also examining the critical shortage of workers between May 2016 and April this year that had resulted in financial losses exceeding RM170 million.

FGV is reviewing all the earlier findings and has sought legal advice on the possible legal recourse.

“The board will make further announcements on the next course of action after it has been duly advised,” it said.

While acknowledging responsibility to shareholders to generate and deliver value, FGV will refocus on its core competencies to restore the integrity of its operations.

“The board was committed to ensuring that the highest principles of corporate governance are instilled in all employees, at all levels.”

While FGV has always fulfilled the terms of the Land Lease Agreement with Felda, the company said there was still much room for improvement, both operationally and in financial management.

“The board will strive to ensure its critical turnaround plan is implemented while resolving issues surrounding past investments and transactions that have depleted FGV’s cash resources,” said chairman Datuk Wira Azhar Abdul Hamid.

The board will strive to ensure its critical turnaround plan is implemented while resolving issues surrounding past investments and transactions that have depleted FGV’s cash resources. DATUK WIRA AZHAR ABDUL HAMID

FGV chairman