KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has dismissed a news report that there were plans to delay its president and chief executive officer Datuk Zakaria Arshad’s comeback to the group by extending the deadline of the domestic inquiry (DI) proceedings.
In refuting a slew of inaccuracies in the report by a financial weekly, FGV also denied that its former group president and CEO Datuk Mohd Emir Mavani Abdullah was involved in approving or implementing Safitex Trading LLC’s payment process as maintained by Zakaria in the report.
“We wish to clarify that the conclusion of the DI was delayed from last week due to Zakaria submitting a two-day medical certificate (MC) to the independent DI panel in the late afternoon of August 29, 2017.
“In the interest of ensuring proper due process, the independent DI panel took into account Zakaria’s MC and adjourned the DI proceedings until Zakaria was able to continue to present his defence on September 5 after the long Merdeka and Hari Raya Aidiladha public holidays,” FGV said in its filing to Bursa Malaysia yesterday.
On June 6, Zakaria was suspended along with chief financial officer Ahmad Tifli Mohd Talha and two other senior officers, namely Delima Oil Products senior general manager Kamarzaman Abd Karim and FGV Trading Sdn Bhd CEO Ahmad Salman Omar.
The suspensions were due to alleged accounting irregularities at FGV’s subsidiary Delima Oil Products Sdn Bhd, which had dealings with a Dubai-based customer, Safitex Trading.
FGV claimed that none of the Safitex Trading related approvals and transactions had Emir’s signature or made any reference to him.
FGV said contrary to the view taken in the report, the decision to scrap the proposed acquisition of a 55 per cent stake in a Chinese edible oil company, Zhong Ling Nutril-Oil Holdings Ltd, was not by Zakaria. It was due to the conditions precedents (CP) in the sales and purchase agreements could not be fulfilled within the CP completion date nor has the same been waived.
“The board decided to make an announcement of the above on April 8, 2016. In February 2017, another proposal to partner with Zhong Ling Nutril-Oil Holdings Ltd in relation to FGV’s subsidiary in China was initiated by a working committee under Zakaria’s leadership but was aborted due to funding issues,” it said.
On the 37 per cent stake in PT Eagle High Plantations, FGV said its opting out of the transaction was also not a decision by Zakaria.
It was due to the negotiations with the vendors namely Rajawali Capital and Rajawali Corpora for a possible different mode of investment in Eagle High did not materialise, with both parties mutually agreed to terminate all negotiations on the proposed acquisitions with immediate effect as announced on December 23, 2016 by FGV board.
“The mode of investment, among others, comprised potential joint venture, off take agreement or other form of mutually agreed collaborations as announced on December 1, 2015.
FGV reiterated that the independent DI panel is expected to deliver its decision early next week.