FGV board in the dark over chairman’s appointment

Major changes in group’s board could be next

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) board is in the dark over the changes in its chairmanship and there is likely to be a shake up of the board following the appointment of Datuk Wira Azhar Abdul Hamid as the chairman of the company.

The Government, with the golden share in the plantation group, has the prerogative to appoint chairman, CEO and one director.

However, in its filings with Bursa Malaysia, FGV said that as of 5.30pm yesterday, it had yet to receive the notification in writing from the Minister of Finance on the appointment of former Sime Darby Bhd acting president Azhar as FGV’s chairman.

FGV, noting that the Government has the right to appoint the chairman of the board of directors, said its board, therefore, would continue to be led by acting chairman, Tan Sri Dr Sulaiman Mahbob, in discharging its duties.

It is likely that there will be major changes to the board of directors at FGV following the arrival of Azhar to the board and his appointment is the first step before an overhaul of the board is made.

Earlier yesterday, Prime Minister Datuk Seri Najib Tun Razak, who is also the finance minister, announced that Azhar would now head FGV as its new chairman. His appointment took effect yesterday.

In a statement, Najib said: “I am confident that with his vast experience, Azhar will effectively helm FGV and, at the same time, enhance investor confidence, which would translate into a stronger share price for the company.”

Najib also thanked Tan Sri Sulaiman Mahbob, who was the acting chairman since June 19, for his contribution to FGV while also undertaking his responsibility as the chairman of Telekom Malaysia Bhd.

In June 2017, Azhar resigned from Malakoff fuelling speculation that he could be heading towards FGV as CEO to take over from Datuk Zakaria Arshad.

Azhar, who has a short stint in Malakoff Corp Bhd as group managing director, is well known for his stint in plantation giant Sime Darby.

He joined Sime Darby in 1994 and left the group later and was appointed group chief executive of Pernas International Holdings Bhd from November 2001 till October 2002.

In 2003, Azhar returned to the Sime Darby group as business development director in Sime Darby Plantation Sdn Bhd.

Since then, he had assumed various key positions within the Sime Darby group, including managing director of Tractors Malaysia Holdings Bhd, managing director of Sime Darby Plantation Sdn Bhd and acting president and group chief executive overseeing the entire Sime Darby Group’s operations until August 2010.

Azhar then joined Mass Rapid Transit Corp Sdn Bhd as its CEO from 2011 till 2014.

Meanwhile, FGV president and CEO Datuk Zakaria Arshad, who was told to go on leave three months ago, is expected to know his fate next week.

The domestic inquiry proceedings to investigate alleged impropriety practices by Zakaria and three others pertaining to the plan- tation 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 on Tuesday, pointed out that the panel investigating the matter has resumed its proceedings.

“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.

In the meantime, Datuk Khairil Anuar Aziz will continue to serve as FGV’s officer-in-charge 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.