THE recent problems faced by Felda settlers are not the result of a change in government after the 14th general election but to the agency’s top management, said the scheme’s welfare groups.

These problems include delayed living allowances and harvest payments, which allegedly started in the last three months when the bureaucracy was adjusting the new Pakatan Harapan administration.  

A group representing second-generation Felda settlers, SGK2F, said these hiccups should not occur as there has been no change in government policy towards Felda, the agency tasked with running the 259 settlements.  

The lower price for oil palm fruits that Felda-linked refineries paid to settlers was also a decision made at the agency level – not by the government, said SGK2F.

“Nothing has changed at the policy level,” said SGK2F adviser Zulkefli Nordin.

“The policies and the agreements that Felda signed with the settlers are the same from before the elections.  

“This has nothing to do with the delay in appointing the chairman. The inefficiency comes from Felda’s senior management.”  

Felda settlers in Pahang told The Malaysian Insight that they their monthly living allowances have benn coming in a week late since May.

They also complained that prices for fresh fruit bunches (FFB) that Felda set this budding season is lower compared with last year.

They said the ousted Najib administration would boost prices during such seasons.

When they asked the agency’s officers stationed at the settlements, the settlers were told that the problems stemmed from the transition between administrations.

Part of the blame was also laid on the delay in appointing new Felda chairman Megat Zaharuddin Megat Mohd Nor, who only took office on July 27, two months after his predecessor Shahrir Samad left.  

Old problems   

The delays in payments, said Lurah Bilut settler Osman Ismail, also occurred during the previous Najib Razak administration of which many settlers are fond.

“The late payments also happened before the general election. It’s not just the monthly allowances but also payments for our harvests.”

The monthly living allowance is from a three-year loan from Felda while their holdings are being replanted with new trees.

The loan provides a monthly allowance of between RM900 and RM1,200 while they wait for Felda to finish replanting their 4ha holdings, a process which usually takes three years.  

Most Felda settlers usually take out such loans at 6.2% annual interest as they are unable to earn an income from their holdings during replanting, said Osman.

Settlers, who are already harvesting their plots, earn an income by selling their FFB to Felda.

“This is not a problem with the government but with Felda itself. I’ve been receiving my harvest payments late even before the general election.”

Zulkefli of SGK2F also dismissed the late-payment excuse attributed to a new chairman.

“The loan agreements between settlers and Felda are the same and have been the same since before the election. The approvals have already been given, they have to be executed.

“You don’t need the chairman’s signature for every monthly payment.”

Refineries set prices   

SGK2F chairman Mohamad Stap Osman said the lower price is because of a lower base-extraction rate (KPA) and graded-extraction rate (KPG) that refineries are using for fruit bunches this season.

The rates are usually measured in percentages. The higher the percentage, the better it is for settlers.

“Last year’s rates were between 20% and 22% per tonne. This year, the rate has fallen to about 18% per tonne, which is low,” said Osman.

One percentage point is worth between RM28 and RM32. For instance, a settler who gets an 18% rate at an average of RM30 per point will earn RM540 per tonne from his fruits, Osman said. – August 6, 2018.