SETTLERS are demanding that the Federal Land Development Authority (Felda) be transparent in dealing with their outstanding loans.

They said that for starters they want Felda to start issuing accurate loan statements so that they are aware of what they still owe the agency.

For now, they said, they are clueless on the amount they owe despite taking part in a government initiative to waive some of their loans. That initiative however has been cancelled by the present administration.

Pertubuhan Suara Generasi Baru Felda, an association of younger generation Felda settlers said while it understood the government’s latest decision in not continuing to waive their loans, it also wants the settlers to be kept up to date on their loans and amounts owed.

“For me, the government’s intention is clear, that they will not continue the programme because it has been completed.

“The loan adjustment made by the government in the past did not involve the full amount but only in part. The balance of the debt still needs to be paid.

“Our current issue is that the settlers have not been given their debt statements,” its chairman A Rashid Ridha told The Malaysian Insight.

Rashid said the settlers were struggling with their debts.

“These settlers are burdened with debt. Felda says it will manage our land but then they charge us for it when there is no income from the land.

“This is an ongoing dispute between Felda and settlers. When the previous government said it wanted to waive the loans, the settlers closed their eyes and agreed to the terms,” he said.

Last week, law and institutional reform minister Azalina Othman Said said the government was ending the debt-waiver scheme as it has made a huge impact on Felda’s cash flow.

She said collections for loan repayments must continue as it is a source of income for Felda to ensure its sustainability and the welfare of settlers.

She said Felda will continue to help settlers with other existing initiatives to ensure the settlers’ debt does not continue to rise.

Former prime minister Muhyiddin Yassin’s announcement in July 2021 saw as many as 91,782 settlers agreeing to take part in the programme to readjust their loans.

Following Azalina’s statement, Felda chairman Idris Jusoh clarified that the debt-waiver programme was not canceled but has come to an end, as the government had already fulfilled its promise to pay off the settler’s debt totalling RM8.3 billion in 2021. 

Dubious amounts

Rashid said the settlers received notices from Felda on adjusted loans but claimed the amount charged to the settlers was dubious. 

“Previously we have not received any debt statements, but now notices are issued but the amount they say we owe them is still high, running to thousands of ringgit. 

“We are not sure if these amounts are accurate as we don’t have any previous statements to compare with.

“That’s why I said it doesn’t matter if the government cancels the debt or not, the settlers want to know their real debt amounts.

“We don’t want the government to write off billions, but until now the settlers don’t know how much debt they owe. Every month an amount is deducted but we don’t know if this is the correct amount” he said.

Settlers are also facing pressure because they have not received their salaries due to the change to an online payment system since last December.

“This system only uses one account per land. As you know, we have land that is shared by families, brothers and sisters. There are cases where a husband and wife are divorced but continue to work on the divided land. Felda pays into the husband’s account, but not the wife.

“We also have cases of settlers not getting their salaries since December,” he said.

Rashid hopes that his side can meet with Prime Minister Anwar Ibrahim to explain the problems faced by Felda settlers. 

He said the meeting had been set but was delayed due to Anwar’s recent visit to Indonesia.

“We are waiting for a new date to meet with the prime minister because this Felda issue is getting worse,” he said. 

Sad day for settlers

Felda Sungai Tengi Village Management Committee member Zainal Abidin thinks that settlers will continue to be oppressed if the government stops the debt-waiving programme.

“If the programme is cancelled, it is a sad day for settlers. The previous government had approved it only for the new government to cancel it.

“We have not received any information yet. When the news came out, many settlers complained, wondering why this ensued.

“Do we want to wait two or three days for an explanation from Felda. If this news is true, it is a disappointment. That is the fate of us settlers who are oppressed more and more,” said the settler from Selangor.

Zainal also confirmed that the settlers did not receive debt statements from Felda management and because of that, not all agreed with their loan adjustment programme.

“We never got any statements to indicate our loan amount when we were taking part in the debt-waiver initiative.

“Settlers want to know what deductions were made, the details and how much debt there is after deductions. It is not clear because there are no statements.

“For example, if the settler’s debt is RM200,000 after it is cancelled, we want to know the balance of their debt after deductions are made.

“That’s what the settlers are asking for,” he said. –  February 27, 2023