FGV shares down 7pc on US Customs palm oil detention order

The Felda Global Ventures logo is pictured at its headquarters in Kuala Lumpur October 9, 2019. — Picture by Choo Choy May

KUALA LUMPUR, Oct 1 — Shares in FGV Holdings Bhd dropped by 6.95 per cent today, following the detention order on its palm oil issued by the US Customs and Border Protection (CBP).

At 10.11am, its shares fell eight sen to RM1.07 with 14.04 million shares transacted.

The counters opened at RM1.13 compared with yesterday's close of RM1.15.

The CBP said effective September 30, 2020, all US ports would detain palm oil and palm oil products made by the company, its unit and its joint ventures.

Its office of trade directed the issuance of a withhold release order against palm oil and palm oil products made by FGV based on information of alleged use of forced labour.

The order, according to CBP, was the result of a year-long investigation that allegedly revealed forced labour indicators, including abuse of vulnerability, deception, restriction of movement and isolation.

In its response to CPB’s claim, FGV said it has been taking concrete steps over the past several years in demonstrating its commitment to respect human rights and to uphold labour standards.

“As mentioned in our statement dated September 26, 2020, various efforts have been carried out by FGV in honouring such commitment, including continue to strengthen procedures and processes in the recruitment of migrant workers and adopted guidelines and procedures for the responsible recruitment of migrant workers in 2019 in accordance with international standards.

“FGV is also not involved in any recruitment or employment of refugees. And in fulfilling the rights of workers to adequate housing, we have over the past three years, invested approximately RM350 million to upgrade housing facilities for our workers by constructing new residences in our plantations all over the country,” it said in a statement today. — Bernama

Source: Malay Mail