Nod for disciplinary probe on FGV four
> ‘But no one guilty unless proven so by impending domestic proceedings’
PETALING JAYA: There are sufficient facts and grounds for the Felda Global Ventures Holdings Bhd (FGV) board to initiate disciplinary proceedings against its chief executive officer (CEO) Datuk Zakaria Arshad and three other senior management officials.
This is one of four key findings in the independent report by former minister in the Prime Minister’s Department Datuk Seri Idris Jala, who was appointed on June 7 as an independent party to establish facts of the case and propose solutions.
A statement by the Prime Minister’s Office (PMO) yesterday said the government and FGV agreed for FGV to continue its ongoing disciplinary proceedings.
“There are sufficient facts and reasonable grounds warranting disciplinary proceedings against Zakaria, chief financial officer (Ahmad Tifli Mohd Talha) and two other senior management officials in relation to alleged breach of procedures in Delima Oil Products Sdn Bhd (DOP), a subsidiary of FGV.
“It should be highlighted that no one is guilty of any wrongdoing at this juncture unless proven by the impending domestic inquiries,” it said.
The statement added that the four officials (which included DOP’s senior general manager Kamarzaman Abd Karim and FGV Trading CEO Ahmad Salman Omar) would be able to defend themselves during the domestic inquiries.
On June 6, the four senior FGV officials were ordered to take leave of absence by group chairman Tan Sri Isa Samad after alleged discrepancies were found in dealings between DOP and Safitex, a Dubaibased company.
The statement added that the DOP case highlights an immediate need for FGV to improve its corporate governance and business controls at the group and subsidiary levels.
“It is recommended that FGV sets up a “governance quantum leap” team to ensure that this happens as a matter of urgency.
“Instead of making incremental improvements, FGV should identify and adopt best practices, policies and procedures within or outside the industry,” it said.
The statement added that the decline in the financial performance of FGV and Felda in the last few years warrants a comprehensive business review to create a platform that would better position FGV and Felda.
The independent report by Idris and the decisions made by the government and FGV on the way forward is separate from the ongoing investigation by the Malaysian AntiCorruption Commission (MACC). “Their (MACC) investigation is still under way and the outcome will be revealed by them only after they have completed their work.”
Meanwhile, MACC deputy chief commissioner (operations) Datuk Azam Baki said Isa, who is among the main witnesses in the investigations, will be called in to have his statement recorded this week.