KUALA LUMPUR (Sept 13): FGV Holdings Bhd has suspended its group president and chief executive officer (CEO) Datuk Zakaria Arshad with immediate effect.

FGV said the board of directors has issued a notice of inquiry to Zakaria today, following the conclusion of internal investigations into 10 critical issues.

"Each of these issues has resulted in financial loss for FGV and its shareholders," it said in a filing with Bursa Malaysia today.

Following the notice of inquiry, Zakaria's powers and authorities vested in him as group president and 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 Dr Salmiah Ahmad, Dr Mohamed Nazeeb P. Alithambi and Datin Hoi Lai Ping will take over the responsibilities to perform the functions of the group president and CEO of FGV," it said.

The group added that further announcements will be made in the event of material developments on the matter.

Yesterday, Zakaria had shrugged off a letter from the Minister of Finance Inc informing the plantation giant that the ministry has withdrawn its nomination of Zakaria as a director of FGV.

“As far as I am concerned, I am not out. I am still the group president and CEO. To remove me, you need a reason," he had told The Edge Financial Daily. "I still have my contract until March next year."

This came after FGV announced the receipt of the letter from MoF Inc, which holds a golden share in the plantation group.

However, Azhar had told reporters a week ago that he would not rule out the possibility of the CEO and other top management personnel being removed in view of “adverse findings” from a forensic investigation into the group’s previous activities.

Trading in FGV shares has been suspended from 3.29pm today, pending the material announcement. At 3.28pm, FGV shares were up 5 sen or 3.36% at RM1.54, with  4.2 million shares traded, bringing a market capitalisation of RM5.51 billion.