Transformation Office finalising mill, estate audits

KUALA LUMPUR: FGV Holdings Bhd has established a Transformation Office (TO) which is in the process of finalising audits into estate and mill operations and downstream processes.

The TO was established in April this year after reviewing FGV’s unfavourable performance.

Early findings revealed serious issues at multiple levels within the organisation, ranging from poor work discipline to operational inefficiencies and leakages that need to be addressed immediately.

FGV said the TO would submit its final report to the board in the next few weeks.

FGV established a three-member Special Board Committee (SBC) on July 5, headed by chairman Datuk Wira Azhar Abdul Hamid and board members Datuk Dr Salmiah Ahmad and Dr Nazeeb Alithambi.

The SBC was formed to investigate operational shortfalls and the management’s inability to provide convincing explanations, solutions or strategic plans of the company.

The committee was established to monitor FGV’s performance, engage directly with the group president and chief executive regularly on the progress of key result areas.

“It is the board’s view that with a performance-centric management team, FGV will be able to extract much more value from its assets than it has in the recent past,” said Azhar.

“Several leaks had to be plugged and process improvements will lead to immediate bottom-line improvements,” he said.

The SBC will be expanded to draw expertise of board members, among them specialists in the plantation industry, corporate governance and turnaround management.

FGV said SBC would appoint key individuals to several critical management functions to restore operational integrity and implement best management practices in all the group’s business units.