KUALA LUMPUR, June 9 An investment holding
company of Felda Global Ventures Holdings has shelved
plans to sell an Islamic bond in Malaysia, IFR reported on
Friday, after investigators raided the parent FGV's headquarters
following allegations of corruption.
FGV Seri Costa had filed 1.5 billion ringgit ($352 million)
sukuk wakalah programme with Malaysia's securities regulator and
sole arranger Maybank was finalising documents for a bond issue,
IFR said. The sale is likely to be suspended indefinitely amid
uncertainties at the parent firm, IFR added, citing bankers.
FGV was not immediately available for a comment.
The world's No.3 palm plantation group has begun an internal
probe into some transactions at a subsidiary, while FGV's board
suspended its Chief Executive Officer Zakaria Arshad and three
others earlier this week.
The CEO has denied wrongdoing and called on the Malaysian
Anti-Corruption Commission (MACC) to conduct its own
investigation. Officials from MACC spent nearly eight hours at
FGV's headquarters on Thursday, seizing documents and
interviewing company officials.
"MACC is currently in the process of reviewing the documents
that were seized to collect evidence relating to the
investigation before further action is taken," MACC Deputy Chief
Commissioner Azam Baki said in a statement.
"MACC will begin to call witnesses and individuals involved
to help with the investigation shortly," he added.
The investigation focuses on six issues involving FGV, he
said, without providing any details.
Turmoil at FGV - whose biggest shareholder is state-owned
Federal Land Development Authority - could hurt Prime Minister
Najib Razak, who government sources say is expected to call
elections later this year.
FGV shareholders, many of them small landowners, form a key
vote bank for Najib's ruling alliance in battleground states.
($1 = 4.2635 ringgit)
(Reporting by Kit Yin Boey for IFR and Emily Chow, writing by
A. Ananthalakshmi; Editing by Himani Sarkar)