FGV CEO suspended over company losses

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KUALA LUMPUR — FGV Holdings Bhd Group president/chief executive officer Datuk Zakaria Arshad was suspended from his duties after a notice of inquiry was served on him.

The board of directors issued the notice after concluding internal investigations into 10 critical issues that resulted in financial loss for FGV and its shareholders.

“Following the notice of inquiry, the GP/CEO’s powers and authorities vested upon him as the GP/CEO of FGV have been suspended, pending further notification by the board.

“FGV will continue its business as usual. In the interim, the Special Board Committee 2 comprising four FGV directors, namely its chairman, Datuk Wira Azhar Abdul Hamid, Datuk Salmiah Ahmad, Mohamed Nazeeb P Ali Thambi and Datin Hoi Lai Ping, will take over the responsibilities to perform the functions of the GP/CEO of FGV,” it read.

FGV has requested Bursa Malaysia to suspend trading of its shares until 5pm yesterday.

It added that further announcements would be made in the event of material developments on the issue.

Before trading suspension, FGV’s stock price was half-a-sen higher at RM1.54 at 3.28pm, with 4.2 million shares traded.

In a filing with Bursa Malaysia on Wednesday, the agro-business firm said FGV received a letter from its special shareholder the Minister of Finance (Incorporated), withdrawing its nomination of Zakaria as a government-appointed director in implementing FGV’s new constitution, which was approved by FGV shareholders on
June 28.

The withdrawal was in accordance to Clause 89(3) of the constitution, which states that the government-appointed director will cease to be a director on the withdrawal of his nomination.

Among Zakaria’s positions in other organisations are vice chairman of Palm Oil Refiners Association of Malaysia, alternate member of Malaysia Palm Oil Board, council member of University Malaysia Kelantan’s Action Group for Entrepreneurship (AGE), and an advisor to Mobile Food Trucks and Street Food Association, Malaysia.

The latest board change followed last week’s appointment of two new FGV independent directors – Bursa Malaysia’s former chief executive officer Datuk Yusli Mohamed Yusoff and Zurich Life Insurance Malaysia Bhd board member Datin Hoi Lai Ping. — Bernama