The Sime Darby Bhd's board of directors' decision to ask its president and group chief executive (GCE) Ahmad Zubir Murshid to take leave was in line with the principle of good governance, Prime Minister Najib Abdul Razak said today.

"I cannot comment much. I can only comment on the principle. The roles of the board of directors and the management are very clear and whatever action taken by Sime Darby reflects that they need to make a firm and decisive as well as transparent decision.

"So the move by the Sime Darby board of directors is in line with the principle of good governance," he told a press conference called to announce the country's first quarter economic growth figure here today.

Najib said all government-linked companies were responsible over their own performance and the government had already underlined the principle of good governance.

"We have no intention to hide the loss or weakness that has occurred. This goes against the principle of good governance," he said.

Sime Darby announced that Ahmad Zubir had been asked to take leave of absence prior to the expiry of his contract on Nov 26, 2010.

Pending the appointment of a new president and GCE Azhar Abdul Hamid currently Executive Vice-President (Plantation Division) was appointed acting GCE.

- Bernama