FGV issues show-cause letters to CEO, CFO

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KUALA LUMPUR: Felda Global Ventures Holdings Bhd’s (FGV) board of directors has issued and served show-cause letters on group president/CEO Zakaria Arshad and chief financial officer Ahmad Tifli Mohd Talha over the long-outstanding debt of Safitex Trading LLC to Delima Oil Products Sdn Bhd.

In its filing to Bursa Malaysia, FGV said the duo had been given seven days from today to provide a written reply pertaining to the allegations mentioned in the show-cause letters. It added that they would continue to be on leave of absence until further notice from the board.

Last week, the FGV board of directors instructed four senior executives, including Zakaria and Ahmad Tifli, to go on leave effective immediately.

The leave of absence was reportedly to facilitate an internal audit to investigate outstanding payments from Safitex Trading to Delima Oil Products, a subsidiary of FGV.

Besides Zakaria and Ahmad Tifli, Delima Oil Products’ senior general manager Kamarzaman Abd Karim, and FGV trading CEO Ahmad Salman Omar were also asked to take a leave of absence.