Following the sudden action taken against him by the board yesterday, ordering him to go on an indefinite leave of absence pending an internal investigation into a subsidiary company, Zakaria told The Star that it would be difficult to return to FGV if Isa still remained.
“Under the circumstances, I cannot go on working in FGV. Shareholders have to decide, either he (Isa) goes or I go.
“How to work if he’s (Isa) still there? The shareholders can choose either one, they can decide,” he was quoted as saying.
He added that the case for him was strong as he had helped FGV tremendously since he joined in April last year.
According to Zakaria, he helped turn the company around by cutting costs extensively.
“I helped cut costs by RM130 million last year and this resulted in the company showing a small profit in the latest quarterly results.
“It’s a profit compared with the RM81.1 million loss in the same period last year. It’s a turnaround and we are cutting costs more aggressively this year. I am on track to reach my profit numbers of about RM600 million for this year as promised under the turnaround plan,” he was quoted as saying by the daily.
Zakaria said he also has the backing of Felda chairman Shahrir Samad, whom he said supported the measures he has taken so far.
A son of a settler from Felda Palong 1 in Negeri Sembilan, Zakaria has been with the Felda group since 1984. Among his previous postings were Felda Rubber Industries, Malaysia Cocoa Manufacturing, Felda Rubber Products and Felda Marketing Services.
His appointment last April was also well-received in Bursa Malaysia, with FGV shares receiving a positive boost increasing by 2 sen when the announcement was made.
Overruled on business decisions
Zakaria believes the actions against him were taken after he had some differences in the business decisions approved by the board.
Relating how he was overruled on at least two occasions involving investments into non-plantation-related businesses, Zakaria said such decisions were made despite the board’s executive committee having agreed not to proceed initially.
According to The Star, Zakaria said one of those two cases involved the decision to pump an additional £100 million (RM550 million) into Felda Cambridge Nanosystems Ltd, over the next three to four years.
“The subsidiary had already lost RM117 million in the past three to four years,” he was quoted as saying.
Another questionable deal pertained to an investment of RM300 million for a 30% stake in a factory located in Klang, which he did not agree with.
“Why do I want to put RM300 million in a non-core business?” he was quoted as saying.
“There are other examples, direct negotiations, direct contracts… I’ve been entrusted with managing the company well and when I enforce it, then this is what happens,” Zakaria told The Star.
Yesterday, Zakaria called for the Malaysian Anti-Corruption Commission to investigate FGV and even him to get to the bottom of allegations against the company, saying the anti-graft agency should focus on the procurement departments in FGV and its subsidiaries.
“On paper, everything is above board. I invite the MACC to investigate. Who’s behind all the deals, who are the people we’re giving contracts to, which companies and why only these companies get contracts,” he was quoted as saying.
Meanwhile, Isa, in an unscheduled press conference yesterday, said that Zakaria was being investigated over a delay in payment from an Afghan company, Safitex, to an FGV subsidiary.
“No time frame has been set for this investigation, but we will issue a show-cause letter to Zakaria once it is completed,” Isa said, adding that Zakaria will then get an opportunity to defend himself.