Root cause...glc use by umo as job placement to politicans.

look like no green ampau raya for fgv..management problems will take years to solve

Cover Story: FGV in turmoil
2/43




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The Edge
The Edge



Jose Barrock, Esther Lee and Adam Aziz

20 hrs ago




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Video of drunk boy goes viral




http://assets.theedgemarkets.com/SPRM_Menara-Felda_theedgemarkets.jpg© Provided by The Edge http://assets.theedgemarkets.com/SPRM_Menara-Felda_theedgemarkets.jpg

ON April 1 last year, Datuk Zakaria Arshad took the helm of Felda Global Ventures Holdings Bhd (FGV) from Datuk Emir Mavani Abdullah amid much fanfare.

After all, Zack, as he is popularly known, is the son of a FELDA settler and has been with the company for 32 years.

“Basically, he is one of them, the settlers,” the son of a settler, who is now a banker, tells The Edge, explaining Zakaria’s popularity.

Zakaria was hand-picked by FGV chairman Tan Sri Mohd Isa Abdul Samad to be the company’s CEO, and the two seemed to be happy working together.

However, sources from the plantation industry who know Zakaria say that after a couple of months, his relationship with Isa took a turn for the worse.

“It soured. We knew he was having a tough time,” a friend of Zakaria’s says.




It seems the feud reached boiling point late last year when there was much pressure on Isa to step down from FELDA and FGV (FELDA has a 33% stake in FGV).

Some quarters say Zakaria did not back Isa, but opted to remain neutral, while others say he jumped out of what seemed like a sinking Isa ship.

However, in January, Isa was replaced as chairman of FELDA and its units but maintained his chairmanship at FGV.

It seems things have never been the same between the two, since then.

“Isa felt betrayed. He had brought Zakaria up from nowhere to be the CEO of FGV, a respected position. So, maybe he expected Zakaria’s support when he hit bad times at FELDA,” a mutual friend of the two tells The Edge.

Now Datuk Seri Idris Jala has been roped in. He was appointed by the prime minister last Wednesday as an independent party to find a way forward for FGV.

But will he be able to make a difference?

Spilling the beans

Last week, Zakaria, incensed that he had been told to take leave, came out lambasting FGV. He told a local daily that FGV Cambridge Nanosystems Ltd, a company producing high-grade carbon nanotubes and graphene, had lost RM117 million over the past three to four years, and now needed another £100 million for expansion.

Considering that only in late 2013 did Cambridge Nanosystems partner FGV, it would indicate losses of RM2.78 million a month or RM33.43 million a year from the company.

“To me, this is ridiculous. We’re a plantation company,” he is reported to have said.

Interestingly enough, in FGV’s FY2016 annual report, it is stated that on Dec 8 last year, the board approved the proposed divestment of the 70% equity interest in FGV Cambridge Nanosystems, and as at Dec 31, 2016, the company had been classified as an asset held for sale.

In FGV’s report for the first quarter ended March, there is only RM46.06 million worth of assets held for sale, which means FGV is unlikely to recover its investment in FGV Cambridge Nanosystems.

Zakaria told the daily that he had proposed to stop investing in the business and the board agreed. However, three weeks later, the decision was reversed when they decided to continue the investment.

Zakaria also said he had opposed a proposal to pay RM300 million for a 30% stake in a creamer factory, which the management also opposed, but the board overruled the decision.

“There are other examples, direct negotiations, direct contracts ... I’ve been entrusted with managing the company, but when I want to enforce strictly, this is what happens,” Zakaria had told the daily.

But he is coming out now with all this following his suspension, after more than a year at the helm.

It is also unclear how much of a role Isa plays in FGV as he is a non-executive chairman. As a matter of fact, other than Zakaria, all the board members are non-executive.

Zakaria had said there exists tangan-tangan ghaib or external hands in FGV.

While he did not elaborate, taking money out of the kitty of such a “political” company could be risky, unless done with the blessing of the powers that be. With FELDA settlers making up voters of as many as 54 constituencies, it would be political suicide to aggravate them in an election year.

Prime Minister Datuk Seri Najib Razak was expected to address FGV issues at an event in Kulai, Johor,last Saturday.

Political support

While some say Zakaria has the support of FELDA chairman Tan Sri Shahrir Samad in his feud with Isa, that is not the impression The Edge got when Shahrir was interviewed last April.

Nevertheless, it is understood that he met Najib last week to state his case, but the outcome is uncertain.

However, with some political blogs and websites firmly supporting Zakaria, he is not alone in this fight.

Isa, on the other hand, has been a long-time supporter of Najib and is known

wayang kulit play only..there is no sincerity at all to slove the problems. Intead of to ask him to take leave or being suspended, he is been oppointed as chairman for another glc.. This kind of deal would be bad for fgv

Big money coming

too many q block could be trap for you to buy.. there are somebody want to dump at high price

uob tp 1.38

be alert at oil price movement..any rebound to oil price ..good oppturnty to buy

big funds dumping...reltailers cannot tahan 1. Just imagine if oil price drop toward $30.

oil drop like shit..tsunami for all O&G counters

no more feel good..all balik kampong already eat ketupat without rendang

good rebound..reach target for the day 1.65

need big fund to support push up

Ajib sucessfully solved DRB headache...tmorrow drb will be suspended for material anouncement. Fgv left behind unslove untill raya coming. Pity fgv..

Ini kali barulah???

Time to spend all duit raya for those sold when price touch 1.87..186 for the last 2 days

never hope oil price above 60 in 2 to 4 years..US purposely control oil price now. Strategic weapon to all nations that the US considers as enemies which is happen to be oil produser countries such as Russia, certain Arab countries, venezula..

appoint a mat salleh to be the ceo, just like MAS. If politican kacau..normaly the mat salleh just resign. They have their work ethic and principal

retailers cant move the price..but with institutional fund action will move the price easly when something positive happen. With full fledge banking, mbsb will climb to 3.00 in 2 years..

Malaysia boleh...5 billion lost under him..now under MACC investigation but now given another equaly important post. Why not just wait until all the mess in fgv clear first.. can he perform in his new GLC office with so many disturbance from macc n various investigation going on?? something fishy or wayang kulit here.

...been reminded for many time never fall in love with a stock..expecially this 1

waiting to be admitted into ICU again n again.

where KFH..LTH..why don't sapu at this price if wanna support fgv?? or just afraid and waiting at lower price..

yes..purposely. Easy to 'songlap' for personal gain

No more duit raya on the table..all taken by big fund and contra players last Monday and yesterday. May be after raya when kfh buy to support..

Yes..force is hopeless man. Never get up from past failure. Now his mind is full of fail..fail2..He is in the dark never see the light at the end of the tunnel. Actually he need a psy doctor to help him. Just pity him

Felda setlers enjoy their duit raya..bonus n dividen oledy but fgv investors were beaten badly today. Let hope can rebound 5 cents tmrrow for extra duit raya..

Ha..ha force the tanjung rambutan man forgot taking his medicine again. Now he is aimless walking around

Tmorrw mat pendek n wife will be summon to macc ofis..could be both of them will be arrested ..something unusual if it involve his wife to be question. May be somebody higher could save him..

but nnow still can gamble for rebound 3-4 cents

big fund taking profit ..they don't speculate but just set their target to take the gain. By tmrow they are on leave oledy with fgv duit raya..

those play contra can try luck below 1.78

it not easy to takeover FGV.. Fgv rents land from felda..felda own by kampong people ..more than 120,0000 families.. In short, very complicated proces

logicaly those play contra sold for profit yesterday now have to wait below 1.80 in order to make another round gain..he..he

run for ur life..tsunami coming

DowJ record high..world indexes all up since yesterday. But Klse down droping like shit..why?? 1MDB???

buy in deep...below 1.80. Raya holiday coming..Thursday n Friday could be heavy selling due to uncertainity and long holiday. Any action and more news after raya holiday

oil price control by US ..not OPEC now. US use oil as strategic weapon to supress Russia, Iran..Arab countries economy..

the water become murky, Zak not agree with the investagators (Jala & Macc) finding. He will hire the best umo's lawyer to fight.. How long this tussle going on??

Force should go to ta pek kong temple with roasted duck for bad luck cleansing..after 2x mbsb failed merger, now merger success but Force fail to predict n miss the boat. MBSB 3rdx lucky but Force 3x bad luck.

steady with dividen...

Slow but steady going up all the way. Will be reach 2.00 by year end.

wait after raya for more clear picture of FGV's direction

raya mood..balik kg. KLSE seem keep on red this week

How much compensation mat pendek been paid to shut his mouth and agree to to be transfer..must be a few million

The end of the day, true investors will come back to their rational thinking and logic by asking if FGV already sloved all the problems with the new chairman..The problem that been exposed is just the tip on iceberg. Goreng2 stock just for raya or election is not sustainable and become a trap for retailers

Could be surpass 1.50 this week..but surely duit raya for mbsb loyalist. Dnt forget 22/6..drp/dividen will be credited.

H. Albar consider expired in Johor umo. Mat pendek still powerful n will lead n9 umo for GE14

Spad not listed..so he can eat it all quiet2. Next become N 9 MB

heavy profit taking for raya's money..struggling to close above 1.80