Felda Global CEO ordered to go on leave after refusing to resign

This article is more than 12 months old

KUALA LUMPUR Malaysia's Felda Global Ventures Holdings said its board had ordered its chief executive, Mr Zakaria Arshad, and chief financial officer, Mr Ahmad Tifli Mohd Talha, to take leave of absence yesterday, as it looks into certain transactions at a unit.

Mr Zakaria had refused to resign after being asked to do so by Felda Global's chairman, according to a letter seen by Reuters.

In the letter dated June 5, Mr Zakaria said he had been accused of wrongdoing in payments to an Afghan company that Felda Global had done business with.

"The payment process... was approved and implemented by the previous chief executive... I am not guilty of those accusations and will not resign as instructed," he wrote.

Mr Zakaria in April last year replaced the previous chief executive who oversaw a failed controversial deal to buy a stake in Indonesia's PT Eagle High Plantations Tbk. - REUTERS