KUALA LUMPUR: The chief executive of Malaysian palm oil giant FGV Holdings, Fakhrunniam Othman, has resigned from the company, he told Reuters on Thursday, confirming media reports.
"Yes, it is true," Fakhrunniam said in a brief text message.
Fakhrunniam did not elaborate on the reasons for his departure, but it came six months after the firm, one of the world's largest palm oil producers, was delisted by its majority shareholder, the Federal Land Development Authority (Felda), a state agency.
The government said last year that Felda was planning to restructure FGV and restore its original mission to prioritise the interests of small farmholders, known in Malaysia as Felda settlers.
Two company sources told Reuters that the management dynamics at the company shifted significantly after FGV was delisted, with its board taking a more hands-on role in day-to-day operations.
"I believe Fakhrunniam was left with no choice due to the board's interference in management. He left on principle, as he could no longer be effective in his role," one of the sources said, adding that he had departed on February 27.
Contracts up for renewal for several members of the leadership team have not been extended, with the FGV board changing its priorities.
In the absence of a CEO, the board has assumed executive responsibilities for the company's operations through a three-member committee, the sources said.
The listing of FGV in 2012 was one of the biggest IPOs in the world at the time, but the firm incurred record losses as the company grappled with financial and governance issues.
In 2020, accusations that FGV used forced labour on its plantations also led the United States to ban imports of the company's products.
The ban was lifted in January, after the U.S. Customs and Border Protection agency found that the company had taken sufficient action to address the allegations. - Reuters
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