‘Disciplinary proceedings against 4 officials should continue’
PUTRAJAYA:There are enough facts and reasonable grounds for Felda Global Ventures Holdings Bhd (FGV) to initiate disciplinary action against its top management.
This was one of four findings of an independent report prepared by Datuk Seri Idris Jala on the FGV issues, according to the Prime Minister’s Office (PMO).
The PMO said FGV should continue with its ongoing disciplinary proceedings against its chief executive officer (CEO), chief financial officer (CFO) and two other senior management officials over alleged improprieties involving the group’s subsidiary and a customer. The government and FGV had accepted these findings, the PMO said in a statement yesterday.
“As such, FGV should continue with its ongoing disciplinary proceedings in relation to alleged breach of procedures in Delima Oil Products Sdn Bhd, a subsidiary of FGV.”
The PMO, however, said no one was guilty of any wrongdoing at this juncture unless proven by the impending domestic inquiries.
“During the domestic inquiries, the four management officials will be able to defend themselves in line with the laws of natural justice,” it added.
The four are CEO Datuk Zakaria Arshad, CFO Ahmad Tifli Mohd Talha, Delima Oil senior general manager Kamarzaman Abd Karim and FGV Trading Sdn Bhd CEO Ahmad Salman Omar.
They are currently suspended from duty after being told to go on leave by FGV’s board.
Idris, meanwhile, was appointed as an independent party on June 7 to establish the facts of the case and recommend the way forward for FGV.
The PMO said the Delima Oil case had highlighted the need for FGV to radically improve its corporate governance and business controls.
“It is recommended that FGV set up a ‘governance quantum leap’ team to ensure that this happens as a matter of urgency. Instead of making incremental improvements, with the help of this team, FGV should, in the first instance, identify best practices, policies and procedures within or outside the industry and, thereafter, adopt these for FGV.
“This way, FGV will make a quantum leap in terms of improvement in corporate governance,” it added.
The report also highlighted that the decline in the financial performance of FGV and Felda in the last few years required a comprehensive business review.
While acknowledging that such a review had already started late last year, it said both FGV and Felda should continue and complete the work with urgency.
“Once completed, it will put in place the right platform which will position both FGV and Felda to become successful companies now and in future. This platform includes the right leadership, strategies, business and operating model,” it added.
The fourth finding relates to the appointment of Tan Sri Sulaiman Mahbob as acting chairman of FGV, while sending incumbent Tan Sri Mohd Isa Abdul Samad to the Land Public Transport Commission as acting chairman.
This was to uphold the integrity, spirit of impartiality of the ongoing inquiry and ensure proper corporate governance of FGV and Delima Oil, said the PMO.
“The government, in exercising its full rights under the provision of article 80 of FGV’s memorandum of articles and association, has appointed Tan Sri Sulaiman Mahbobthe acting chairman of FGV.
“Apart from undertaking the normal roles and responsibilities of the chairman, he will immediately take action to oversee the implementation of the above way forward,” it noted.
The PMO also said the independent report by Idris and the above decision made by the government and FGV on the way forward was separate from the ongoing Malaysian Anti-Corruption Commission’s (MACC) investigation into the issue.
“Their investigation is underway and the outcome will be revealed by them only after the MACC has completed its investigation.”