KUALA LUMPUR, June 7 — Felda Global Ventures Holdings (FGV) chairman Tan Sri Isa Samad and chief executive Datuk Zakaria Arshad should resign to stop the palm oil giant from sliding into deeper crisis, an Umno supreme council member said today.

Datuk Md Puad Zarkashi said the public spat between the two was an "embarrassing episode” that could further reduce investor confidence in FGV, which he noted was already suffering from a "trust deficit”.

"This is such an embarrassing episode and it is obvious that both of them can no longer talk in a civil manner… it is only good for both of them to resign voluntarily.

"Take the honourable route. Let new faces take over the efforts to rebuild FGV so that it would begin making profits again, especially for the main shareholders: the settlers,” Puad said on his Facebook page.

The board of FGV, the world’s third-largest palm plantation operator, suspended Zakaria as president and chief executive yesterday together with the group’s chief financial officer Ahmad Tifli Mohd Talha pending questionable transactions at a subsidiary.

The management dispute has widened with the national anti-graft commission saying it is also investigating several company officials for alleged corruption and abuse of power.

Puad also said the episode should prompt a review of the roles played by the top leadership in government-linked companies and how the board of directors are appointed.

He said this was necessary to prevent power abuse.

"Sometimes, we hear the chairman of the parent company is also chairing some of the subsidiaries… is this good corporate practice?” Puad said.

He added that there must be regulation to ensure that the positions are not monopolised only by an individual.

It is uncertain as to who the Umno leader was referring to when he made the allegation.

Zakaria who has been in service to the Felda Group since 1984 was appointed FGV CEO on April 1 last year to replace Datuk Mohd Emir Mavani Abdullah after a controversial plan to buy Indonesia’s PT Eagle High Plantations.

Zakaria is the first son of a Felda settler to occupy the office.