Is all well at FGV’s board?
THE latest development in Felda Global Ventures Holdings Bhd’s (FGV) boardroom changes warrant an immediate question as to who has the bigger say in the plantation company – the new FGV acting chairman or Felda, the single largest shareholder of FGV with a 34% stake?
On Wednesday, Felda finally got its three representatives – Felda acting director-general Ab Ghani Mohd Ali, Pahang State Felda Affairs Committee chairman Datuk Abu Bakar Harun and Felda deputy director-general (management) Datuk Muzzammil Mohd Nor – to be on the FGV board.
The new additions to the FGV board can be best described as “mission accomplished” for Tan Sri Mohd Shahrir Abdul Samad. He has been championing this cause since assuming the post as Felda chairman early this year, replacing Tan Sri Mohd Isa Abdul Samad.
If the developments had stopped at that, the view that the situation is becoming more stable in FGV would carry weight.
However a statement from the acting chairman, Tan Sri Sulaiman Mahbob, suggests that there are still some rumblings on the board.
His statement was in response to a report in a daily that two FGV directors -- Datuk Dr Omar Salim and Datuk Noor Ehsanuddin Mohd Harun Narrashid -- had refused to resign despite being pressured to do so by Felda.
Sulaiman stated that Dr Omar and Noor Ehsanuddin wanted to resign. However he personally requested all FGV board members, including the two of them, to stay on.
Sulaiman had said that he had taken the step considering the current state of affairs of the company and the way forward that have been accepted by the government and FGV on June 19, 2017. Among them were to improve FGV’s corporate governance and business controls and ‘undertake a comprehensive business review’ as well as ‘to uphold the integrity and spirit of impartiality of the ongoing inquiry’.
He added that necessary updates would be provided if there was any further development.
To recap, Dr Omar and two other FGV senior officials had been given the mandate by Isa to takeover the duties and functions of FGV group president and CEO Datuk Zakaria Arshad who was suspended on June 6.
The suspension was to investigate the alleged irregularities in the business transactions between FGV subsidiary Delima Oil Products Sdn Bhd and long-term business partner Safitex Trading LLC.
However, Isa resigned on June 19 to head Land Public Transport Commission or SPAD. This led the way for Dr Sulaiman being appointed as FGV acting chairman.
Felda as the single largest shareholder of FGV holds a considerable amount of clout. Ultimately, Felda decides who gets to sit on the board of FGV and who is to opt out.
When members of the board come up for re-election, it will be interesting to see how many of the existing members are able to retain their position?
Meanwhile, on the corporate front, there is still much pressure on FGV to perform, particularly in providing a sustainable source of income to Felda, which in turn has been entrusted with the livelihood of 112,635 Felda settlers and their families nationwide.