This article first appeared in The Edge Financial Daily on September 14, 2018
KUALA LUMPUR: It appears that the ghost of the past has come back to haunt FGV Holdings Bhd group president and chief executive officer (CEO) Datuk Zakaria Arshad, who was suspended from his post for the second time yesterday within two years.
But the 58-year-old Zakaria told The Edge Financial Daily that he would contest the suspension, a day after he shrugged off a letter from FGV’s golden shareholder Minister of Finance Inc (MoF Inc) withdrawing him as its nominee to FGV.
“My priority is to clear my name,” he said yesterday.
In a filing with Bursa Malaysia yesterday, FGV said the board of directors suspended the group president and CEO with immediate effect.
The board has issued a notice of inquiry to Zakaria following the conclusion of internal investigations into 10 critical issues, it said, adding that “each of these issues had resulted in financial loss for FGV and its shareholders”.
According to Zakaria, up to seven of these issues are related to FGV’s unit Delima Oil Sdn Bhd, which has been embroiled in a tussle over delayed payments and deliveries of goods with Afghan-based customer Safitex Trading LLC.
“These are old issues,” he said.
These issues were also behind Zakaria’s first suspension in June last year before MoF Inc reinstated him four months later in October that year. This was after the shareholder had reviewed findings by FGV’s domestic inquiry panel into his involvement in Delima Oil.
Following the notice of inquiry yesterday, 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 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.
On Wednesday, Zakaria told The Edge Financial Daily that the letter from MoF Inc did not amount to a removal from his post.
“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 said. “I still have my contract until March next year.”
Trading in FGV shares was suspended from 3.29pm yesterday, pending the announcement. The stock closed up five sen or 3.36% at RM1.54 before the trading halt, bringing a market capitalisation of RM5.51 billion.