KUALA LUMPUR: The Federal Land Development Authority (Felda) will not interfere and micro-manage Felda Global Ventures Holdings Bhd (FGV) despite being its major shareholder, newly-appointed Chairman Tan Sri Shahrir Abdul Samad said.
He said FGV was fairly diversified in its operations, ranging from milling to refinery, transportation and plantation, and it should know its business well.
"We leave it to them, we cannot interfere and micro manage.
"Felda should not interfere in the governance of FGV. (It is a listed company) and it has rules and methods (to follow)," he told Bernama in an interview.
Shahrir was asked to comment on losses incurred by FGV and its business strategies.
According to reports, Felda has 17.29% direct stake in FGV and indirect stake of 19.4%, bringing the total to 36.69%.
Shahrir said Felda has no plan to reduce its stake in FGV.
He described the Turkish venture, Felda Iffco Gida Sanayi, as "a blip" and FGV chief executive officer Datuk Zakaria Arshad knew of its impact.
"We should allow him to execute his plans. They have given us an explanation and assurance on how they would mitigate the problem," he said.
In November last year, FGV discovered fraud at its 50%-owned unit, Felda Iffco, which incurred a stock loss of RM57 million.
FGV recently announced that a forensic audit was being done over the losses and that it was awaiting the official report before taking any further action.
It is also finalising the necessary paperwork to claim insurance coverage on such fraud that will substantially compensate the losses.
Shahrir, however, admitted that as a major shareholder, Felda wanted to see FGV succeed and continue making strides in all ventures.
"We want to see it do well. Because the most important (thing) for it to do well is, we get our dividend. Then we get our return on investment.
"But it is not for us (to) make statement that may suddenly cause the price (of FGV) to jump or come down. We shouldn't be saying anything that would influence the market price.
"However, that does not mean that Felda closes its eyes. Felda also has representatives who will see how FGV functions and achieves its ambition to become a successful company," he said.
Asked whether he planned to meet the FGV board, he said: "No! All my meetings are with Felda board and Felda settlers." - Bernama
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