Fgv Shares Down 7 After Us Customs Detention Order


 
The company’s shares fell eight sen to RM1.07.KUALA LUMPUR: Shares in FGV Holdings Bhd dropped by 6.95% today, following the detention order on its palm oil and products 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 counter opened at RM1.13 compared with yesterday’s close of RM1.15.
The CBP said effective Sept 30, all US ports would detain palm oil and palm oil products made by the company, its unit and joint ventures.
The issuance of a withhold release order against FGV was made based on the alleged use of forced labour by the company.
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 response to CBP’s claim, FGV said it has taken action over the past several years in demonstrating its commitment to respect human rights and to uphold labour standards.
“As mentioned in our statement dated Sept 26, various efforts have been carried out by FGV in honouring such commitments, including continuing 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. - FMT


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