Chief executive of Malaysia's Felda Global Ventures to resume duties after suspension

Datuk Zakaria Arshad was suspended in early June as the company investigated transactions at a subsidiary.
Datuk Zakaria Arshad was suspended in early June as the company investigated transactions at a subsidiary.PHOTO: ST FILE

KUALA LUMPUR (Reuters) - The chief executive of Malaysian palm oil plantation group Felda Global Ventures (FGV) will resume his duties on Oct 16, following a four-month leave of absence, the company said on Monday (Oct 9).

Datuk Zakaria Arshad and the chief financial officer were suspended in early June, as the company investigated transactions at a subsidiary.

The chairman of the firm, whose biggest shareholder is the state-owned Federal Land Development Authority (Felda), stepped down later in June, after the prime minister’s office urged it to tackle bigger issues of corporate governance and control. 

“The ministry of finance would like Zakaria to return as FGV group president and chief executive,” FGV said in a statement.“The domestic inquiry had been carried out with proper internal processes.” It gave no further details. 

FGV was plunged into a management crisis when its chairman asked Zakaria to step aside during a review of transactions involving Delima Oil Products Sdn Bhd and Safitex, an Afghan company. 

Zakaria had extended a letter of credit for a transaction involving Delima and Safitex, a move the board felt was a breach of regular procedure, a company spokesman told Reuters.