Felda Global Ventures (FGV) president and chief executive officer Zakaria Arshad was suspended because one long-time customer in Afghanistan had delayed their payments?
Apparently the issue is that Afghan company Safitex has yet to clear some payments for products supplied by FGV subsidiary Delima Oil Products Sdn Bhd (DOP) – which amounts to just 0.2% of FGV revenue.
The chairman, Tan Sri Isa then blames Zakaria and asked him to he to resign on grounds that he had gone against corporate practices by allowing Safitex’s purchase without a letter of credit, which led to the delayed payment.
According to Zakaria, the payment process for Safitex was approved and implemented by the previous CEO, and the Afghan company has been a DOP client for 20 years with a good credit track record.
The payment delay, according to Zakaria, was also due to the Safitex owner unable to return to Dubai until end June 2017 to execute the payment to DOP.
I don’t know what Tan Sri Isa is up to but if your customer has a good payment record over 20 years, they normally would receive credit terms.
And plus, delayed payments are not uncommon in business and certainly not grounds for dismissal of a CEO – especially if the sum is not big and the customer has a 20 years track-record with you.
Trying to dismiss a CEO who is a Anak Felda in the middle of Ramadan who just took up the position less than a year ago and had helped turn-around the company based on delayed payment for a customer with a 20 years track-record?
Gila. Are you trying very hard to piss-off the Felda settlers and upset the stock-market just before possible upcoming general elections?
What exactly are you trying to do here?
And plus, Tan Sri Isa is also chairman and director of Delima Oil products. So if Zakaria is suspended then the chairman should also be suspended since the payment terms to the Afghan customer has been in existence for a long time.