FGV’s Zakaria to know his fate next week

Domestic inquiry on alleged impropriety practices to deliver its findings

PETALING JAYA: The president and chief executive officer (CEO) of Felda Global Ventures Holdings Bhd (FGV) Datuk Zakaria Arshad ( pic), who was told to go on leave three months ago will know his fate next week.

The domestic inquiry proceedings to investigate alleged impropriety practices by Zakaria and three others pertaining to the plantation group’s dealings with a company based in Dubai with operations in Afghanistan is expected to deliver the outcome of its findings by next week.

FGV, in a filing with Bursa Malaysia yesterday, pointed out that the panel investigating the matter resumed its proceedings yesterday.

“The independent domestic inquiry panel is expected to deliver its decision by early next week as one of the panel’s members has had to leave on an official trip overseas this (yesterday) evening,” said FGV in the statement.

The company said that, until further notice from the board, the CEO and group chief financial officer Ahmad Tifli Mohd Talha would continue to be on a leave of absence.

“In the meantime, Datuk Khairil Anuar Aziz will continue to serve as FGV’s officer-incharge and Aznur Kama Azmir will continue as FGV’s interim group chief financial officer until further announcement by the board,” it said.

The domestic inquiry panel was set up by FGV to investigate alleged impropriety practices pertaining to Safitex Trading LLC.

Apart from Zakaria and Ahmad Tifli, the two other executives were also told to take a leave of absence.

They are Delima Oil Products’ senior general manager Kamarzaman Abd Karim and FGV Trading CEO Ahmad Salman Omar.

The allegations centred on long-outstanding debt that Safitex Trading’s operations in Afghanistan owed Delima Oil Products Sdn Bhd, which is a subsidiary of FGV.

The board deemed that the amount due was above the limit of authority permitted to the CEO and that it was due from Safitex’s operations in Afganistan and it added to the risk of recovery of the debt.

However, Zakaria in his defence has stated that the amount due was from Safitex’s operations in Afghanistan, the Dubai-based company.

The leave of absence was reportedly to facilitate an internal audit to investigate the outstanding payments from Safitex Trading to Delima Oil Products.

The panel to investigate Zakaria and the others was set up in July. The panel does not comprise any FGV directors.

Zakaria had an open spat with the former chairman of FGV Tan Sri Mohd Isa Samad. Zakaria claimed that Isa had told him to resign.

Isa, had on June 6, held a press conference and announced that Zakaria had been issued a letter to take an indefinite leave of absence with immediate effect.

Zakaria, in earlier reports claimed that he was being forced out of the group because he opposed capital expenditure plans by the board into areas that were not core to the plantation business.

Pursuant to that, Isa resigned from FGV effective June 19.

Isa was held by the Malaysian AntiCorruption Commission (MACC), in the middle of last month, over the purchase of a London hotel by Felda Investment Corp.

He was released on bail of RM150,000 five days after that when the MACC decided not to apply to extend his remand.

He presently serves as acting chairman of the Land Public Transport Commission.