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Isa Samad says FGV's condo lawsuit crafted just to shame him

KUALA LUMPUR (April 18): Former Federal Land Development Authority (Felda) chairperson Tan Sri Mohd Isa Abdul Samad (pictured) has denied that he took "steps" that caused FGV Holdings Bhd (FGV) to buy two luxury condominiums at Troika, Persiaran KLCC here, purportedly at above market price.

Instead, he said the acquisition was a result of a business judgment made collectively by FGV's board members.

His argument was provided in the amended statement of defence filed to the High Court by Mohd Isa on March 19, in response to a statement of claim filed by FGV against both him and Datuk Mohd Emir Mavani Abdullah, the former president and group chief executive officer of FGV, over the purchase of the Troika units.

FGV filed the suit against Mohd Isa and Mohd Emir last December. The company claimed the duo had failed to discharge their "fiduciary duty, duty of fidelity and/or duty to exercise reasonable care, skill and diligence" with regard to the purchase of the condos and other matters, resulting in losses suffered by the company.

Mohd Isa's statement of defence, together with Mohd Emir's, was obtained by theedgemarkets.com today when the suit was called for case management.

Mohd Isa said the decision to approve the proposed acquisition of the Troika units was made by the directors, members and persons who attended FGV's Board Meeting on June 23, 2014. At the time, Mohd Isa was FGV's chairman.

The decision to buy, he said, was made in good faith and for a proper purpose, with the reasonable belief that the decision was in the best interest of FGV.

He also said he was permitted to occupy and use one of the units (Unit A), along with his family members, with FGV's knowledge, approval or consent for almost two years, until he resigned from his chairman post in June 2017.

The appointment of vendors to furnish Unit A was similarly authorised by FGV and/or made with its knowledge, approval and consent, he claimed.

He further contended that the alleged loss suffered by FGV as a result of the acquisition is without basis, given that the ownership of the units has remained with FGV since it was purchased in September 2014. "The plaintiff (FGV) was the registered owner of the Troika units and remains the registered owner of the units to date," Mohd Isa said.

The 69-year-old said the suit filed by FGV against him was an afterthought and for the collateral or politically motivated purpose of simply "shaming" him.

Meanwhile, Mohd Emir, 55, said in his statement of defence that the proposal for the purchase of the Troika units for him and Mohd Isa was mooted by FGV's company secretary. "The proposal was to get an apartment close to FGV headquarters, with the nearest being the Troika. [This] was also mooted by the legal and procurement team," he said.

Subsequently, he instructed FGV's head of legal and procurement department to undertake the necessary actions, in accordance to FGV protocols, to submit a proposal for the acquisition, Mohd Emir claimed.

He also denied he had exclusive use and possession of the second Troika unit (Unit B), and that the purchase was never done with the intention to benefit him personally in any way.

He added he never had the units renovated, and that the furnishing of the units was done in accordance to and with the consent of the then chief human resources officers and the facilities management team.

"The ultimate decision for the purchase rest with the board of FGV and the purchase was independently decided by the board," he said, echoing Mohd Isa's defence.

Therefore, both Mohd Emir and Mohd Isa contended that the suit brought against them ought to be dismissed by the High Court, with costs.

High Court Judge Datuk Azimah Omar today fixed an eight-day trial period for the lawsuit, starting Nov 25, to hear the case. The specific hearing dates are: Nov 25-29, and Dec 2-4. The case was also fixed for further case management on June 26.

FGV is seeking RM2.9 million from Mohd 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 company is also seeking RM3.14 million from Mohd Emir over the purchase of cars and RM10,837.10 over his petrol benefit, which it claimed were abused.

Counsel Arthur Ng Wei Meng appeared for FGV today, while Joshua Goh Shang Yi and Vincent Lawrence acted for Mohd Isa and Mohd Emir, respectively.  — theedgemarkets.com

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