RM1.4b of RM10.5b from FGV's listing spent on 'shady transactions', says Azmin Ali
KUALA LUMPUR (April 10): Some RM1.4 billion of the RM10.5 billion generated from the listing of FGV Holdings Bhd was spent on 'shady transactions', said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.
Mohamed Azmin added Federal Land Development Authority (Felda) will restructure payment of principal and delay of loan payback amounting to RM1.98 billion in 2019, and balance of payment worth RM9.3 billion scheduled for payment between 2020 and 2028.
"The government has agreed to provide government guarantee to allow Felda to restructure its loans with financial institution," said Mohamed Azmin when he tabled the White Paper.
A Survey by The Edge Malaysia
He said Felda's cash balance fell to RM35 million as at May 9, 2018 from RM400 million at end-2017.
Mohamed Azmin said its cash averaged RM2.5 billion between 2007 and 2011, when it was still profitable.
According to the White Paper, Felda made a net profit of between RM200 million and RM1.1 billion annually between 2007 and 2011. This is opposed to a net loss of RM4.9 billion recorded by the firm in 2017.
To address Felda's cashflow issue, the government will also provide instant cash assistance to ensure operational sustainability and development of settler lands.
Felda is slated to complete the development of 3,296 housing units, which is 70% complete. The original cost to complete the remaining 30% is estimated at slightly over RM196 million.
Under the Land Lease Agreement (LLA) between Felda and FGV, Felda should receive a payment of RM248 million per year and profit share of 15% for Felda's lease of its commercial land for a course of 99 years.
"However, Felda only received an average of RM400 million a year from FGV, as opposed to RM800 million required per year in the minimum to manage the plantation and to ensure the livelihood of the settlers," said Mohamed Azmin.
Mohamed Azmin said its investment into 37% stake in Eagle High Plantations which cost RM2.3 billion was only valued at RM500 million as at March 2019.
Audit forensic report underlined impairment of asset amounting to RM2.2 billion across eight transactions, representing 50% of the original cost of investments.
The report also noted the purchase of Kensington Plaza in London, initiated by ex-chairman Tan Sri Isa Samad without Felda board approval, at RM331 million whereas market price was only RM128 million at the time.
MAIN POINTS OF WHITE PAPER
KUALA LUMPUR, April 10 (Bernama) -- The following are the main points of the FELDA New Model tabled in Parliament today by Economic Affairs Minister Datuk Seri Mohamed Azmin Ali in a white paper themed, ‘Towards FELDA’s Sustainability’.
1. Long-Term Land Rental Arrangement - The land scheme settlers participating in this scheme will have their farm management unified, with the land rented and managed by FELDA for a long term. This will solve the problem of ageing settlers, lack of capability and lack of people from the young generation to work the farms.
2. Settlers’ Development Programme to Derive New Incomes - An initiative to generate new incomes through suitable crop and livestock diversification. FELDA will propel the nation’s food industry, hence reducing food imports amounting to over RM45 billion a year.
3. Farm Management Through Strengthening Felda Cooperative - FELDA will establish constructive cooperation with FELDA Cooperative for management activities to be carried out on a big and more economical scale. The cooperative’s involvement will also be boosted in terms of management, investment and businesses carried out by FELDA.
4. Use of Latest Technology - As the country’s biggest land bank, FELDA will be moving from the traditional farming system to smart farming with the use of modern technology.
5. FELDA will be introducing the New Aid Scheme which is more flexible and based on the settlers’ needs to avoid a high debt burden in the long run for them. The rates of repayment will be based on the settlers’ income.
6. Enhancing Social and Physical Infrastructure - Raising the settlers’ quality of life and rural socio-economic status through urbanisation of FELDA land schemes through collaboration between all the ministries and government agencies.
7. Improving Quality of Education and Self-Worth of FELDA’s new generation - Human resource development among FELDA’s new generation and women through implementation of the Technical and Vocational Education and Training (TVET) scheme in collaboration with government-linked and private companies.
8. Strengthening Leadership Role at the Land Schemes - The role of the Village Community Management Council (MPKK) will be streamlined to build consensus among settlers. The Economic Affairs Ministry, FELDA and related agencies will draw up a socio-economic plan for the settlers encompassing entrepreneur development, infrastructure, human capital and personal development, particularly towards tackling social ills among FELDA youths.
9. Implementation of Housing Projects - The government and FELDA will speed up the FELDA New Generation Housing (PGBF) projects which are progressing at 70 per cent and more. A total of 4,794 new generation families will each be able to own a house at the same plot of the original owner’s.
10. Drawing Up the Land Inheritance Scheme for Smooth Handing-Over - Updating data on land ownership is being actively done to finalise land inheritance information. The pilot project on ownership data has been completed in FELDA Mempaga 3, Kampung Serik and Lurah Bilut, and this will be extended to 314 other FELDA land schemes.
-- BERNAMA
MAIN POINTS OF WHITE PAPER
KUALA LUMPUR, April 10 (Bernama) -- The following are the main points of the FELDA New Model tabled in Parliament today by Economic Affairs Minister Datuk Seri Mohamed Azmin Ali in a white paper themed, ‘Towards FELDA’s Sustainability’.
1. Long-Term Land Rental Arrangement - The land scheme settlers participating in this scheme will have their farm management unified, with the land rented and managed by FELDA for a long term. This will solve the problem of ageing settlers, lack of capability and lack of people from the young generation to work the farms.
2. Settlers’ Development Programme to Derive New Incomes - An initiative to generate new incomes through suitable crop and livestock diversification. FELDA will propel the nation’s food industry, hence reducing food imports amounting to over RM45 billion a year.
3. Farm Management Through Strengthening Felda Cooperative - FELDA will establish constructive cooperation with FELDA Cooperative for management activities to be carried out on a big and more economical scale. The cooperative’s involvement will also be boosted in terms of management, investment and businesses carried out by FELDA.
4. Use of Latest Technology - As the country’s biggest land bank, FELDA will be moving from the traditional farming system to smart farming with the use of modern technology.
5. FELDA will be introducing the New Aid Scheme which is more flexible and based on the settlers’ needs to avoid a high debt burden in the long run for them. The rates of repayment will be based on the settlers’ income.
6. Enhancing Social and Physical Infrastructure - Raising the settlers’ quality of life and rural socio-economic status through urbanisation of FELDA land schemes through collaboration between all the ministries and government agencies.
7. Improving Quality of Education and Self-Worth of FELDA’s new generation - Human resource development among FELDA’s new generation and women through implementation of the Technical and Vocational Education and Training (TVET) scheme in collaboration with government-linked and private companies.
8. Strengthening Leadership Role at the Land Schemes - The role of the Village Community Management Council (MPKK) will be streamlined to build consensus among settlers. The Economic Affairs Ministry, FELDA and related agencies will draw up a socio-economic plan for the settlers encompassing entrepreneur development, infrastructure, human capital and personal development, particularly towards tackling social ills among FELDA youths.
9. Implementation of Housing Projects - The government and FELDA will speed up the FELDA New Generation Housing (PGBF) projects which are progressing at 70 per cent and more. A total of 4,794 new generation families will each be able to own a house at the same plot of the original owner’s.
10. Drawing Up the Land Inheritance Scheme for Smooth Handing-Over - Updating data on land ownership is being actively done to finalise land inheritance information. The pilot project on ownership data has been completed in FELDA Mempaga 3, Kampung Serik and Lurah Bilut, and this will be extended to 314 other FELDA land schemes.
-- BERNAMA
