Govt denies irregularities in Felda

By Sharon Tan, The Edge

KUALA LUMPUR: The government on Wednesday, June 16 refuted claims of irregularities in the Federal Land Development Authority (Felda) although it admitted that its cash reserves had been reduced.

Deputy Minister in the Prime Minister’s Department Datuk Ahmad Mazlan said Felda had cash reserves of RM4.08 billion in 2004 but the figure had dropped to RM1.35 billion at the end of 2009.

“It has dropped by RM2.73 billion. Out of this, RM2.41 billion was used for socio-economic development, training, productivity incentives and infrastructure insurance.

“Another RM2 billion was used for replanting, revenue deposit and to support the cost of living for settlers. A total of RM603 million was spent on housing loans without interest while RM253 million was allocated as special funds to eradicate poverty in Sabah. Another RM662 million was spent on the purchase of the 50-storey Menara Felda in the Golden Triangle,” Ahmad said at a press conference at parliament lobby on Wednesday.

He added that it cost Felda RM935 per square foot (psf) when it purchased Menara Felda in 2008 but its value has now appreciated to RM1,400 to RM1,500 psf.

An open letter purportedly by former deputy minister of land and cooperatives Datuk Tan Kee Kwong, who is now a PKR member, has been circulating in the past week alleging mismanagement of Felda funds, which he alleged had dropped from RM4.5 billion in 2004 to RM200 million.

The letter, which blames Prime Minister Datuk Seri Najib Razak for the dwindling cash reserves, among other things, said that given the record crude palm oil price of the past few years, Felda’s cash reserves should have increased to RM6 billion.

Ahmad said while Felda’s cash reserves had dropped, its total assets had increased from RM9.17 billion in 2004 to RM15.37 billion last year.

“The cash reserves went down by RM2.73 billion while the assets have gone up by RM6.2 billion,” he said.