KUALA LUMPUR – Felda Global Ventures Holdings Bhd (FGV) president and chief executive Datuk Zakaria Arshad was today relieved of duties with immediate effect.
According to news reports, the FGV board ordered him to go on indefinite leave pending an investigation into payments due from Afghan company Safitex for palm oil products supplied by FGV subsidiary Delima Oil Products Sdn Bhd.
The Star Online reported Zakaria confirming the order in a letter signed by FGV chairman Tan Sri Isa Samad.
The FGV board’s decision comes a day after Zakaria was reported refusing an instruction allegedly from Isa to resign from the company following a May 31 FGV board meeting.
He was reported to have written a letter denying breaching corporate practices by allowing Safitex to purchase palm oil products without a letter of credit, resulting in delayed payments to the FGV unit.
According to local dailies New Straits Times and Utusan Malaysia which claimed to have sighted Zakaria’s June 5 letter to Isa, the FGV CEO asserted that the credit facility had been offered to Safitex before his appointment to the current post.
Zakaria allegedly said it was difficult to “micro manage” all of FGV’s subsidiaries and that he should not be held responsible for unsettled debts.
He was also reported attributing the delayed payment the inability of Safitex’s owner to return to Dubai to issue the payment order until end of this month, but that Delima was taking legal action to recover the sum owed though it was less than 0.2 per cent of FGV’s total earnings.
Zakaria who has been in service to the Felda Group since 1984 was appointed FGV CEO on April 1, 2016 replacing Datuk Mohd Emir Mavani Abdullah.
– Malay Mail