KUALA LUMPUR (Sept 12): The Ministry of Finance has removed Datuk Zakaria Arshad as the Government-appointed director to the board of directors at FGV Holdings Bhd.
Announcing this in a stock exchange filing today, the plantation group said it has received a letter from the Minister of Finance Inc (MoF Inc) informing it of the withdrawal of the ministry's nomination of Zakaria as director of FGV.
“The cessation as director takes effect upon FGV receiving a letter from the Minister of Finance (Incorporated), FGV's special shareholder on Sept 12, 2018, withdrawing their nomination of Datuk Zakaria Arshad as government appointed director in implementing FGV's new constitution, which was approved by FGVs shareholders on 28 June 2018. The cessation is in accordance to Clause 89(3) of FGV's new constitution,” FGV said.
Zakaria, 58, was appointed the group president and CEO of FGV on April 1, 2016, to replace Datuk Mohd Emir Mavani Abdullah, whose contract with the group had expired.
However, Zakaria was suspended from duties in June 2017, as the group probed allegations of irregularities involving certain deals at Delima Oil Products Sdn Bhd, a subsidiary of FGV. He was later reinstated on Oct 16 that year by the special shareholder.
On Sept 3, FGV chairman Datuk Wira Azhar Abdul Hamid told reporters he would not rule out the possibility that Zakaria and other top management officers might be removed in view of "adverse findings" uncovered during a forensic investigation into the group's previous activities. However, he stressed then that any actions to be taken would have to wait until the group obtained finalised legal opinion from its lawyers.
FGV shares slid two sen or 1.32% to settle at RM1.49 today, giving it a market capitalisation of RM5.44 billion. The stock saw 3.19 million shares done.