This article first appeared in The Edge Financial Daily on May 16, 2018

KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) is close to concluding internal investigations into several issues which have been plaguing the company, sources said.

Issues being investigated include FGV’s investments in FGV Cambridge Nanosystems Ltd, the acquisition of Asian Plantations Ltd (APL) and the buying of Troika apartments near the Kuala Lumpur City Centre (KLCC).

“The investigations should be concluded by the end of this month, after which charges will be filed,” a source close to FGV said. FGV’s top brass could not be contacted for comment.

The Edge Financial Daily understands that FGV had appointed lawyers and consultants locally and abroad as part of the probe, as APL was publicly traded on the Alternative Investment Market of the London Stock Exchange.

In 2014, FGV acquired Singapore-incorporated APL for RM628 million and assumed RM388 million in liabilities, meaning FGV forked out a little over RM1 billion for the acquisition, after a voluntary conditional cash offer of £2.20 per share — a premium of about 294.7% over APL’s net asset value per share as at Dec 31, 2013.

APL has 24,622ha of oil palm plantations located around Miri and Bintulu in Sarawak. According to news reports, as much as 40% of APL’s land were not plantable and close to 2,600ha were encumbered with native customary rights claims, meaning as much as 9,900ha cannot be planted on.

News of Cambridge Nanosytems first appeared in October 2013 when FGV said a memorandum of understanding had been signed for the production of high-grade carbon nanotubes and graphene from the by-product of crude palm oil.

In FGV’s 2017 annual report, it is stated that in the previous financial year, the board approved a divestment of the 70% equity interest “which is expected to be completed in 2018”.

FGV is understood to have initially invested some £20 million, but the total investment is unknown.

As for the condominiums, politicians who were previously with the opposition had claimed that FGV had acquired two condominiums, located in The Troika, opposite the KLCC twin towers. Some politicians are reported to have said that FGV forked out RM8.4 million for the two condominiums, but both these properties did not generate any income for FGV.

There is also talk that investigations into the conduct of FGV president and chief executive officer (CEO) Datuk Zakaria Arshad, chief financial officer Ahmad Tifli Mohd Talha, FGV’s unit Delima Oil Products Sdn Bhd senior general manager Kamarzaman Abd Karim and FGV Trading Sdn Bhd CEO Ahmad Salman Omar may be revived, but this could not be confirmed.

They were implicated in delays in payment and delivery of goods between Delima Oil and  long-time Afghan-based customer Safitex. The four were suspended and took leave of absence but eventually returned to FGV and resumed their duties.

FGV’s parent is the Federal Land Development Authority, which has a 33.67% equity interest in the plantation giant.