KUALA LUMPUR, March 15 ― An opposition lawmaker raised questions today over the proposal by government-linked Felda Global Venture Holdings Berhad (FGVH) to acquire the majority stake in Zhong Ling Nutri-Oil Holdings Ltd.

DAP's Tony Pua said the estimated RM976 million purchase of a 55 per cent stake in the Cayman Islands-based peanut oil company appeared dubious and rushed, noting that the firm has not completed its audited accounts since 2013.

“There are many questions arising from this particular transaction, including the reason for FGVH to acquire a peanut oil company and variances arising from a complicated profit guarantee by Zhong Ling’s vendors.

“However, the biggest question which FGVH must answer to its shareholders is… why is FGVH acquiring a company which has failed to complete its audited accounts since December 2013?” Pua asked.

“We have to suspect that something is not right because they have not completed their audit and the deal is being rushed,” he told reporters at a press conference at the Dewan Rakyat today.

Pua claimed that Zhong Ling’s failure to submit its audited accounts for 2014 and 2015 was a clear sign that the company was in trouble and wanted to make a quick profit by selling off its assets to FGVH.

“It gives the signal that Zhong Ling's shareholders are seeking a profitable exit by disposing of the troubled assets to a company desperate to boost its earnings,” he said.

The Petaling Jaya Utara MP also urged FGVH to pull the plug on the deal, and asked for Zhong Ling’s audit to be completed to ensure public funds were not misused.

“The deal should only ever be considered after Zhong Ling has regularised its audit shortcomings, and even so, only if the latter allowed a separate independent audit be carried out to verify the financial statements,” Pua said.

FGVH has been under public scrutiny after a steady decline in its stock since it was public listed in July 2012.

The government-linked stock which was initially listed as RM4.45 per share closed at RM1.51 yesterday, according to Pua, representing a 66 per cent decline in prices.