Based on former minister Idris Jala’s recommendation, it is also found that the suspension of its CEO and three others is justified
KUALA LUMPUR: Felda Global Ventures needs to improve its corporate governance practices and have better grip at all levels, according to former minister Idris Jala’s fact finding report on the agency
The former minister in his report called FGV to “radically improve its corporate governance and business controls at the Group and subsidiary levels.”
“It is recommended that FGV sets up a ‘governance quantum leap’ team to ensure that this happens as a matter of urgency.
“Instead of making incremental improvements, with the help of this team, FGV should in the first instance, identify best practices, policies and procedures within or outside the industry and thereafter, adopt these for FGV.
“This way, FGV will make a quantum leap in terms of improvement in corporate governance,” he had said in his report, said the Prime Minister’s Office in a statement today.
The call for corporate governance implementation comes based on alleged breach of procedures in Delima Oil Products Sdn Bhd, a subsidiary which has dealings with an Afghan company Safitex.
Based on the report, PMO also said that there were sufficient facts to suspend four officials and for FGV to continue with its ongoing disciplinary proceedings against them.
“There are sufficient facts and reasonable grounds warranting the FGV Board to initiate disciplinary proceedings against its CEO, CFO and two other senior management officials in relation to alleged breach of procedures in Delima Oil Products Sdn Bhd (DOP), a subsidiary of FGV.”
The four are chief executive officer Zakaria Arshad, group chief financial officer (CFO) Ahmad Tifli Mohd Talha, Delima Oil Products Sdn Bhd senior general manager Kamarzaman Abd Karim and FGV Trading Sdn Bhd CEO Ahmad Salman Omar, who were all suspended earlier this month pending an internal probe.
PMO also said the move to replace Isa Samad with Sulaiman Mahbob for the position of FGV chairman was done to uphold the integrity, spirit of impartiality of the ongoing inquiry and ensuring proper corporate governance.
“The government has decided to appoint Isa Samad as acting chairman of Land Public Transport Commission (SPAD).
“The government, in exercising its full rights under the provision of article 80 of FGV’s memorandum of articles and association, has appointed with immediate effect Sulaiman Mahbob as acting chairman of FGV.
“Apart from undertaking the normal roles and responsibilities of the chairman, he will immediately take action to oversee the implementation of the above way forward.”
It also said that these finding would not in any way affect the ongoing probe by the Malaysian Anti Corruption Commission on FGV.