The Felda Global Ventures Holdings Berhad (FGV) board has set up a Board Executive Committee to act in place of its president and chief executive Datuk Zakaria Arshad who was suspended today.
In a statement to Bursa Malaysia, the board of the world’s third-largest palm oil company said directors Datuk Omar Salim and Datuk Mohd Zafer Mohd Hashim, together with the head of its logistics cluster Azman Ahmad, will take over Zakaria’s responsibilities for the time being.
It also said FGV chief financial controller Ahmad Tifli Mohd Talha has been asked to go on leave of absence and will be replaced in the interim by the palm oil giant’s plantation sector financial controller Aznur Kama Azmir.
Both Zakaria and Ahmad Tifli have been put on indefinite leave with immediate effect pending investigations of certain transactions owed to FGV subsidiary Delima Oil Products Sdn Bhd from Afghan company Safitex.
“FGV will continue its business as usual,” the board said in its statement to the Malaysian stock exchange.
FGV shares dropped seven sen to RM1.66 on the national bourse before trading was suspended for the announcement just before noon today.
The FGV board’s decision comes a day after Zakaria was reported refusing an instruction allegedly from Isa to resign from the company following a May 31 FGV board meeting concerning delayed payments owed to Delima by Safitex.
Zakaria denied breaching corporate governance practices by allowing Safitex to purchase palm oil products without a letter of credit, resulting in delayed payments to the FGV unit.
Zakaria who has been in service to the Felda Group since 1984 was appointed FGV CEO on April 1, 2016 replacing Datuk Mohd Emir Mavani Abdullah.