Swine-(dling) Scruple

FGV CEO-designate Emir Mavani

Bad enough that it was raised about the designated CEO to FELDA Global Ventures Holdings Bhd. Emir Mavani claimed to have obtained the doubtful Ph.D. in ‘Government Reforms’ from Warnborough University in the United Kingdom, in here barely three weeks ago. Now, it seems that there is what should be a scandalous deal when its out in the open.

It was said that even before taking over officially as the CEO of FGVH, Mavani made the decision to sell RBD Palm Olein to some ‘non preferred’ customers. RBD Palm Olein is the liquid fraction obtained by the fractionation of palm oil after crystallization at controlled temperatures. It is especially suitable for frying and cooking.

What is interesting about the buyer is Yunnan Huijia Import & Export Co. Ltd. of China. The company’s main stay of business operations in rearing and trading swine and pork meats and related products.

Screenshot of Yunnan Huijia Co. Ltd's website

Screenshot of Yunnan Huijia Co. Ltd’s website

The deal was for the sale of 50,000 metric tons of RBD Palm Olein.

FELDA Marketing (FELMA) is the outfit to market CPO and processed oil. FELMA advised against the sale, considering the background of the buyer. More over, the sale of products to companies in China is usually at a lower price. Thus, any export to China would not be FELMA’s preferred choice.

It was said Mavani went ahead with the sale despite FELMA’s opposition and instructed that a USD 20.00 per ton discount be given to Yunnan Huijia. The current market price of RBD Palm Olein is USD 790-800.00 per ton (Malaysian domestic market).

It is believed on top of that discount, the commission USD 20.00 for every ton that was sold to Yunnan Huijia was personally pocketed by someone within FGV. That is a cool USD million for the RBD Palm Olein deal.

Malaysian Anti Corruption Commission officers should investigate the sale of RBD Palm Olein to Yunnan Huijia and probably Mavani’s own accounts. FGV cannot be tarred if the CEO and senior management are involved in separate deals with their clients and suppliers. What is more damaging if there were personal gains made, through these deals.

On another perspective Shareholders of FGV, especially those from the 112,635 FELDA settlers would likely want to know why are they selling products to swine producers at a discounted price. More over, subsidising export. It would not be good for them to feel that their investment is technically subsidising porcine based business in China.

Its is a serious matter of integrity. Especially FGV is the corporation that is entrusted to carry out business where the proceeds would be channeled to fund for the development programs for the 112,635 families of FELDA settlers and neighbouring communities.

Mavani is supposed to take over from Tan Sri Sabri Ahmad in 25 days time. Mavani was PEMANDU’s nominated personality into the BOD of FGV. He was the director in charge of oil and gas in PEMANDU.

It is believed that since it was raised in public domain, Prime Minister Dato’ Sri Mohd. Najib Tun Razak recently instructed the BOD of FGV to investigate the integrity of Mavani’s Ph.D. In the upcoming board meeting on Monday 24 June, Mavani is expected to produce his Ph.D, original trasncript and thesis for scrutiny and verification.

Let’s hope that there is no unscrupulous practice of deception detected. There is too much at stake here.

Published in: on June 20, 2013 at 10:00  Comments (41)