Can FGV move beyond its tainted legacy?
Emmanuel Samarathisa | 10 May 2019 00:30
SCANDAL-PLAGUED FGV Holdings Bhd is seeking a fresh start. Group CEO Datuk Haris Fadzilah Hassan, whose tenure began on Jan 23, has three years to turn around the company.
However, this may be an uphill task as FGV is undertaking a transformation plan against the backdrop of a RM1.07 bil loss for the financial year ended Dec 31, 2018, its worst result since going public in 2012.
But looming over FGV’s desire for better fortunes are three legacy issues. Firstly, laying off employees at its headquarters and regional offices with, according to a news report citing sources, the group is expected to cut 30% or 6,000 managerial staff.
Secondly, the controversial land lease agreement (LLA). As part of FGV’s listing exercise, Felda leased some 355,000 ha of its acreage to FGV for 99 years. In return, Felda was to receive payments of RM248 mil a year as well as 15% of the profits every year.
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