Felda a case of massive fraud, says top economist

Ragananthini Vethasalam Ragananthini Vethasalam Updated 7 years ago · Published on 10 Apr 2019 2:38PM · 8 Comments

Former Council of Eminent Persons member Jomo Kwame Sundaram says while the world is fixated on the 1MDB saga, there are other cases of corruption, fraud and mismanagement in Malaysia that must be exposed. – The Malaysian Insight pic by Kamal Ariffin, April 10, 2019.

WITH the world fixated on the 1Malaysia Development Bhd scandal, the “massive fraud” involving Felda went almost unnoticed, said prominent economist Jomo Kwame Sundaram.

The former Council of Eminent Persons member said the land development agency went from being flush with cash to its current state of deficit due to fraud that took place at taxpayers’ expense.

“Massive fraud had taken place at taxpayers’ expense as far as Felda is concerned.

“When (Muhammad) Alias (Raja Muhammad Ali) stepped down as Felda chairman, he left a surplus of RM8 billion to RM9 billion. Now, the deficit exceeds that amount because we haven’t calculated all the losses the director-general is alleging.

“It is a massive, massive fraud. How can you run down the company from an RM8 billion-plus surplus to an RM8 billion-plus deficit?

“It was all done within a period of 17 to 18 years,” he said on the sidelines of the launch of a Khazanah Research Institute report, titled “The Status of the Padi and Rice Industry in Malaysia”, today.

Jomo said while the world is fixated on the 1MDB saga, there are other cases of corruption, fraud and mismanagement in Malaysia that must be exposed.

“The problem is, everyone is focusing on 1MDB, (but) there are other cases of massive fraud that have taken place, (such as) the East Coast Rail Link and so on… which need to be exposed.”

The government today announced that it has allocated RM6.23 billion to rescue Felda from its financial troubles.

Economic Affairs Minister Mohamed Azmin Ali, when tabling the Felda White Paper in Parliament, revealed, among others, that the administration of former prime minister Najib Razak used RM2.7 billion allocated for the agency to buy support in general elections.

Felda’s problems came as the agency diversified using profits made when palm oil prices were high, setting up corporate entities to handle non-plantation-related businesses.

In 2009, when Najib became prime minister, the group’s debt was RM1.5 billion. As of last year, the amount was RM8 billion.

Felda’s troubles can be traced back to when former Negri Sembilan menteri besar Mohd Isa Abdul Samad was its chairman, from 2011 to 2017. He has been charged with criminal breach of trust and receiving bribes over the purchase of a Kuching hotel by the agency’s subsidiary, Felda Investment Corp.

Its woes also include the listing of Felda Global Ventures Holdings, which has lost 60% of its share value.

Additionally, Felda made the controversial purchase of stakes in Eagle High Plantation, losing an estimated RM1.7 billion in the deal with Indonesian tycoon Peter Sondakh, who is an associate of Najib.

The agency has been unable to pay settlers on time after each harvest of fresh fruit bunches. Settlers themselves are swaddled with debt they owe Felda for loans taken out for replantation schemes. – April 10, 2019.

Economic Affairs Minister Mohamed Azmin Ali, when tabling the Felda White Paper in Parliament, revealed, among others, that the administration of former prime minister Najib Razak used RM2.7 billion allocated for the agency to buy support in general elections. – The Malaysian Insight pic by Seth Akmal, April 10, 2019.

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Comments

  • Why is PH now bailing out Felda at the expense of tax payers mint?
    Reorganise Or revamp felda, fragmentise Felda into components for other Ministries to take over. The bail out money of RM6.2 million will be all gone in 3 years... for the simple reason being... the people are the same, the business is the same the practices will be the same.. so how will RM6.2 nil help even if your minus the corruption part in the equation. How different are we going to do things given the challenging market environment - demand, prices, etc..
    Lets not kid ourselves, to revive an organisation like Felda is like reviving the Malaysian Airline! See what happens to the airlines today, despite a massive restructuring exercise involving the retrenchment of 7,000 over personnel. Still in the Red today and bleeding profusely..
    the problem with our government is we have to make tough decisions, you cannot be soft...
    its the same with the massively bloated civil service.. As Dr M put, it has to be trimmed..Tough decisions would have to be made for the sake of the future generations.. Otherwise our children will only inherit massive debts.. and an unsustainable economy!
    Back to Feld, cut your losses now.. Tough it may seem but it will be better for the future of this country..

    Posted 7 years ago by Kampung Boy · Reply

    • Error...Tax payers money..

      Posted 7 years ago by Kampung Boy · Reply

  • Ask Prof Jomo for his unsolicited and frank views

    Posted 7 years ago by Kampung Boy · Reply

  • Those who voted blindly over the years are paying a hefty price. But in the end, genuine and hardworking tax payers are the ones bearing the most. What if they had balik kampung as being told off repeatedly. If these voters continue to close an eye because they are race biased, irrespective of being robbed and raped over and over again, hopefully you and your children and their children still have God's blessings .

    Posted 7 years ago by Concerned Citizen · Reply

  • Talk so much. All the crooks are still walking and shopping in London..

    Posted 7 years ago by . . · Reply

  • Why do the non-malays have to pay taxes to save a malay company when most of the time they called us pendatang?

    Posted 7 years ago by Richard Foo · Reply

  • Enough said, just get those bastards brought to justice, can we do that for a start. Don't think those settlers would change to PH by this findings as to them its just plain revenge. They had better time under Najib say what you want and today with palm oil price at its lowest they only see who is in charge of this country not knowing the full picture what EU is driving at. To have a decent living is all they are looking at. Break the findings down to settlers understanding else its all a waste. I sincerely hope the new management team at Felda do their utmost to turn around the situation. and for heaven sake let it be no more political intervention, enough is enough.

    Posted 7 years ago by Teruna Kelana · Reply

  • The bottom line... each day more and more taxes are introduced. While the culprits and their family continue to enjoy.

    Posted 7 years ago by Mr Anderson · Reply