REVEAL the source of your funding for the Felda incentives, PKR vice-president Rafizi Ramli has challenged Prime Minister Najib Razak, following the latter’s announcement of cash assistance for settlers at yesterday’s Felda Settlers’ Day celebration in Putrajaya.

“The four incentives add up to RM1.42 billion when Putrajaya and Felda just don’t have that kind of money,” Rafizi said in a statement today, querying where the prime minister would find the money for four out of the six initiatives announced.

“Najib should specify where his government found the money so that the Felda settlers do not fall victim to Barisan National propaganda.”

The four incentives in question are:

1. Cash incentives of RM475 million, in which RM5,000 is given out to each settler
2. Forgiving RM128 million in debt for settlers who took out FGV equity loans.
3. Debt forgiveness of RM519 million, or up to RM5,000 for each settler that had taken part in Felda’s programme to replant unproductive oil palm.
4. A special fund of RM300 million to be set up for 2017 to 2021, to help with replanting operational debts of RM40,000 or more.

The two incentives that Rafizi did not include were:

1. Interest-free housing loans of up to RM40,000 and approval to construct more than one house per site. At least 70,500 sites for single-unit homes have also been set aside by Felda and approved by state governments, with the cost of the units’ construction to be borne by the settlers
2. A special replanting grant by the Malaysian Palm Oil Board of up to RM167 million, covering 24,280ha until 2020.

Rafizi explained that similar incentives were also given out during GE13 where RM2.24 billion was promised, mostly from the Employees Provident Fund (KWSP).

He also said Felda had debts of RM10 billion with interest payments of at least RM400 million a year, based on the 2014 audit report.

“The truth is Felda does not have this kind of money to give out. This year, it has also bought shares in a plantation company in Indonesia that is friendly to Najib, but paid twice the going rate of RM2.2 billion,” he said.

Rafizi added that the source of all Felda’s problems came from the failure of the FGV listing on the stock market, along with biased appointments of contractors for replantation.

“If Najib were not to list FGV, as he was asked, this problem would not have happened. Meanwhile, if the (contractor appointment) process is managed well by Felda without high tender prices to elected contractors, the settlers will not be burdened by this debt,” he said. – July 24, 2017.