FGV sues ex-chair Isa Samad, former CEO over overpriced condo buys

(MMO) – FGV Holdings Berhad has sued former chairman Tan Sri Isa Samad and former chief executive officer Datuk Mohd Emir Mavani Abdullah over the purchase of two luxury condominium units allegedly for above market price.

In a filing with Bursa Malaysia yesterday, the agricultural and agri-commodities company’s board said the lawsuit centred on FGV Holdings Bhd’s purchase of the luxury condominium units at the Troika within the Kuala Lumpur City Centre (KLCC) area “at prices significantly above market value and without proper due diligence”.

The lawsuit is also over Isa and Mohd Amir’s “alleged wrongful and/or unauthorised use and possession” of the two luxury condominium units.

FGV’s board said the lawsuit further includes the company’s purchase of cars and their alleged misuse by Mohd Emir, as well as his alleged misuse of his fuel allowance.

In the lawsuit filed in the High Court in Kuala Lumpur, FGV blamed the duo for losses suffered as a result of their alleged failure to discharge their “fiduciary duty, duty of fidelity and/or duty to exercise reasonable care, skill and diligence”.

FGV Holdings is seeking RM2.9 million from Isa and Mohd Emir over the condominium units and RM1.6 million over their use and possession of the units, with the duo to be jointly and severally liable to pay for these sums.

The firm also wants Mohd Emir to pay RM3.14 million over the purchase of the cars and RM10,837.10 over his petrol benefit.

In total, FGV is claiming almost RM7.7 million.

The company also sought for interest to be applied at five per cent per annum on the compensation awarded, starting from the date the lawsuit was filed until the date of full and final settlement.

On November 23, FGV had also filed a lawsuit against 14 of its former senior management members including Isa and Mohd Emir over the company’s 2014 purchase of a 100 per cent stake in Asian Plantation Limited via a voluntary conditional cash offer.

The company sought RM514 million in compensation for losses suffered from the company’s acquisition or alternatively a sum to be decided by the courts.

Isa, a former Negri Sembilan mentri besar, recently quit Umno to independently contest the Port Dickson by-election that PKR president Datuk Seri Anwar Ibrahim won.