Report: Safitex Trading owes FGV unit RM50m

PETALING JAYA: Safitex Trading LLC’S long outstanding debt owing to Felda Global Ventures Holdings Bhd ’s (FGV) subsidiary Delima Oil Products Sdn Bhd has increased to US$11.7mil (RM50mil).

Bloomberg reported that PricewaterhouseCoopers’ (PwC) statutory financial audit for the financial year ended December 2015 (FY15) reported on the long outstanding debt of Safitex amounting to US$8.3mil to Delima Oil. FGV owns 72% of Delima Oil.

It said the amount resulted in an impairment exposure, according to an e-mailed statement.

However, the balance increased to US$11.7mil and exceeded the allocated credit limit per PwC’s statutory financial audit for FY16.

Bloomberg also reported that FGV’s board had on April 20 instructed an internal audit team to carry out an investigation of matter and detected potential contraventions of group policies.

The wire report said that transactions with Safitex involved the sale of edible oil and fats to Dubai-based Safitex meant for delivery to the Afghanistan market.

To recap, FGV group president and chief executive officer Datuk Zakaria Arshad and chief financial officer Ahmad Tifli Mohd Talha have been given leave of absence since Tuesday, pending investigations on certain transactions under Delima Oil.

Corporate News , FGV , Delima Oil , plantation