The following is the full statement from the Prime Minister’s Office on the Felda Global Ventures Holdings (FGV) Bhd issue, dated June 19, 2017
1 . The Government and FELDA Global Ventures (FGV) has received Dato' Sri Idris Jala's independent report on the FGV's Board's decision and action to suspend its CEO, CFO and two other senior management officials. This is pursuant to his appointment as an independent party on 7 June to establish the facts of the case and recommend the way forward.
2. Having reviewed the report, both the Government and FGV have today accepted the four key findings and way forward as follows:
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. As such, FGV should continue with its ongoing disciplinary proceedings. It should be highlighted that no one is guilty of any wrongdoing at this juncture unless proven by the impending domestic inquiries. During the domestic inquiries, the 4 management officials will be able to defend themselves in line the laws of natural justice.
The DOP case highlights the immediate need for 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.
The decline in the financial performance of FGV and FELDA in the last few years warrants a comprehensive business review. Indeed, such a review has already started late last year. Both FGV and FELDA should continue and complete this work with urgency. Once completed, it will put in place the right platform which will position both FGV and FELDA to become successful companies now and in the future. This platform includes the right leadership, strategies, business and operating model.
To uphold the integrity, spirit of impartiality of the ongoing inquiry and ensuring proper corporate governance of FGV and DOP, the Government has decided to appoint Tan Sri Isa Samad as Acting Chairman of Suruhanjaya Pengangkutan Awam Darat (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 Tan Sri 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.
3. The independent report by Dato' Sri Idris Jala and the above decisions made by the Government and FGV on the way forward is separate from the ongoing MACC investigation. Their investigation is still underway and the outcome will be revealed by them only after MACC has completed their work.
19th June 2017