THE government will table a white paper on Felda’s financial performance at the next Dewan Rakyat sitting in October, said Economic Affairs Minister Azmin Ali.

The white paper will focus on Felda’s current financial woes, which are due to mismanagement by the previous administration, he said in Parliament during question time today.

A white paper is a government report providing information on an issue.

“Felda is experiencing critical cash-flow problems,” Azmin said, adding that Putrajaya will be selling its non-strategic assets here and abroad as part of a restructuring process to address the agency’s revenue problems.

The immediate priority of the new board of directors and management is to rehabilitate Felda’s cash flow “through discussions with creditors” to restructure its debt, which exceeds RM8.025 billion, he said.

“Our immediate step is the selling of non-strategic assets here and abroad.”

He added that the primary focus of Felda remains the statutory obligation to settlers.

“The new government wants to assure that cost of living loans and cash advances will continue to be made out on time.

“Felda’s critical financial situation is the legacy of the previous leadership, which had weak corporate governance and irresponsible financial management.

“The new government is committed to rehabilitate Felda as soon as possible for the sake of the Felda settlers in line with the Land Development Act.”

Azmin said Felda transferred 400,000ha of oil palm land to FGV Holdings Sdn Bhd, for exploration and listing purposes, in 2012.

Details of the transfer will also appear in the white paper.

Ma’mun Sulaiman (Warisan-Kalabakan) earlier raised the issue, claiming that only 9,000ha have been transferred to Felda settlers thus far.

Ma’mun also asked whether the Tawau oil product factory, a subsidiary of Felda Vegetable Oil Products Sdn Bhd, was still operatiional.

Azmin said both firms were not owned by Felda, adding that FGV Holdings Bhd would not close its refinery operations in Tawau which is undergoing a rationalisation process. 

FGV Holdings, a commercial-listed entity, was formerly known as Felda Global Ventures Holdings. It recently embarked on a rebranding exercise in a bid to distance itself from its scandal-mired parent organisation and other subsidiaries, such as Felda Investment Corporation.

Megat Zaharuddin Megat Mohd Nor, the former chairman of Malayan Banking Bhd, was appointed Felda chairman on July 27. 

He replaces Shahrir Samad, who took over the helm in January after former chairman Isa Samad was investigated last year over a dubious RM270 million land deal in Jalan Semarak, Kuala Lumpur. – August 9, 2018.