Pakatan has no choice but to inject funds into Felda, says PM

Sheridan Mahavera Sheridan Mahavera Updated 7 years ago · Published on 10 Apr 2019 7:48PM · 3 Comments

The Felda White Paper tabled today details the agency's mismanagement under the previous BN administration. – The Malaysian Insight file pic, April 10, 2019.

THE Pakatan Harapan government has no choice but to inject money into Felda, whose funds were stolen by Barisan Nasional, said Dr Mahathir Mohamad.

The prime minister rubbished claims by BN lawmakers that the previous administration gave funds to the land development agency from profits made by related companies.

“If the claims were true, that (BN) was making money and they gave back the money (to Felda), then (the PH) government would not have to inject anything,” he told reporters after the debate on the Felda White Paper today.

“Unfortunately, Felda settlers are suffering because the previous government stole their money. So, we have no choice but to help them.”

Putrajaya has earmarked RM6.23 billion to rescue the agency from its financial woes, which the PH government said began during Najib Razak’s administration.

Due to mismanagement, Felda’s debts shot up by 1,100%, from RM1.2 billion in 2007 to RM14.4 billion 10 years later.

The White Paper said in the same period, the value of Felda’s assets increased by only 107%, while its profits decreased by 590%.

A third of the government’s allocation will be used to pay for interest owed by settlers, who took out loans for replanting schemes as well as received income in advance.

Another RM1 billion will be spent over four years to create new agricultural activities for the 112,600 settlers and their families, so that they are not solely dependent on oil palm.

Economic Affairs Minister Mohamed Azmin Ali, who was present at Dr Mahathir’s press conference, refuted claims that Felda’s purchase of shares in Indonesian firm Eagle High Plantations (EHP) did not impact the agency.

Najib had directed Felda to purchase a 37% stake in EHP at 96% above the market rate. He had argued that the purchase would not impair Felda, as there was a put option that specified the agency could sell back the shares to EHP owner PT Rajawali Capital at the same price with a 6% interest.

Azmin today revealed that when Felda notified Rajawali about its intention to sell back the stake, the agency was rejected.

“This shows that they are unable to return Felda’s investment in EHP.”

In the Dewan Rakyat earlier, he said Rajawali has only US$7.2 million (RM29.6 million) in tangible assets, whereas the cost to buy back the EHP stake is US$505.4 million. – April 10, 2019.

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Comments

  • Pakatan has a choice. Get the former billionaire PM who "recommended" Felda to buy EH assets at high prices to foot the difference.

    Posted 7 years ago by Roger 5201 · Reply

  • The PUT OPTION is worth jack. The counter party will go for arbitration and claim all sorts including force majeure. And even shud Felda wins , the enforcement of decisions reached at arbitration in Indonesian courts will be dodgy. By the time all said and done Felda will walk away from the plantations with very little to show.

    Posted 7 years ago by [email protected] · Reply

  • This is not healthy!! It impacts everyone who are contributing to the taxation of the nation and now the further depletion of the treasury financial strength in injecting funds which benefits only a particular group. Thats is stretching it a bit too far when the war lords of Umno are fleecing their own kind and the others have to bear the failures and plundering. When will it stop. ?????. Enact an urgent act to nationalise the wealth of Umno BN warlords who are not able to proof their legitimacy of their ill gotten wealth. The rakyat are fed up on big fiasco and plundering by unscrupulous UmnoBN war lords.

    Posted 7 years ago by Lee Lee · Reply