KUALA LUMPUR, June 7 — Dubai-based Safitex Trading LLC, which has long outstanding debts with Felda Global Ventures Holdings Bhd’s (FGV) subsidiary, Delima Oil Products Sdn Bhd, has not made payment to the company since the financial year ended December 31, 2015 (FY15).
The outstanding debt which amounted to US$8.3 million (RM35.3 million) has resulted in impairment exposure and has been continuously reported in PricewaterhouseCooper’s (PwC) subsequent quarterly review reports.
“Since then, the management has continuously represented that the balance would be fully recoverable.
“Instead, the balance subsequently increased to US$11.7 million and exceeded the allocated credit limit per PwC’s statutory financial audit for the financial year ended Dec 31, 2016 which was reported to the Audit Committee on February 17, 2017,” said FGV board of directors (BOD) in a statement today.
The BOD added that the transactions involved the sale of edible oil and fats to Safitex, which was meant for delivery to the Afghanistan market.
“On April 20, 2017, the board instructed the Group Internal Audit to carry out an investigation of this matter and detected potential contraventions of group policies out of which a decision was made by the board to request four senior officers to go on leave of absence,” it added.
The FGV BOD said the internal due process would take its course and key developments would be updated from time to time.
According to media reports, FGV President and Chief Executive Officer, Datuk Zakaria Arshad said Safitex, which has been FGV’s client for 20 years, would able to make due payment by end-June. — Bernama