KUALA LUMPUR (Nov 13): The Minority Shareholder Watchdog Group (MSWG) has urged Felda Global Ventures Holdings Bhd (FGV) to extend its group president and chief executive officer Datuk Zakaria Arshad with the willingness and resources “to push through meaningful long-term changes” that are free from obstruction and interference from political interests.

“FGV must have the liberty to truly operate as a business entity with its commercial objectives particularly being a public listed company entrusted to serve the interests of many stakeholders,” the watchdog group said in the latest edition of its The Observer newsletter.

In addition, MSWG thinks that there is more good news at FGV, at least from a cost-trimming perspective, particularly with regards to the recent voluntary separation scheme that will affect 236 senior managers.

Lauding Zakaria’s words that the cost-slashing initiative “has to begin from the top”, MSWG said the move will enhance the confidence of shareholders and stakeholders.

“These moves and statements are apt and necessary, especially after years of mismanagement and profligacy with company finances,” the watchdog group added.

Apart from the VSS scheme, FGV had on Nov 3 also said that its pool of general managers, senior general managers and vice-presidents, including Zakaria, would be taking cuts of about 15% to their allowances as part of the company’s frugal cost management initiative.

Meanwhile, MSWG has called on Mass Rapid Transit Corp Sdn Bhd to be transparent on the tender to build the third line of the mass rapid transit and open new opportunities to firms other than MMC Corp Bhd and Gamuda Bhd to participate and build the upcoming urban rail network.

“In theory and moving forward, the tender for the Line 3 should be transparent, while opening new opportunities to new non-MMC/Gamuda companies to participate in the new 40km Line 3,” it said.

MSGW’s comment was in response to MRT Corp’s new model to build Line 3, which is a departure from the project delivery model, where the government directly finances the project costs, via a project management consortium.

“Under this new engineering, procurement, construction and commissioning role, the winning consortium finances the project entirely on its own, and breaks the MMC/Gamuda stronghold on such projects, where this joint-venture was the PDP provider for both Line 1 and Line 2,” MSWG added.