Tan’s challenge to Najib’s Felda
Assets, what are the assets? Don’t forget: if tomorrow India doesn’t want to buy your palm oil, you’ve got no cash flow. How are you going to run the company? And also loans from EPF. Felda is so big, why does it need loans from anybody?
By Patrick Lee and Jamilah Kamarudin, Free Malaysia Today
FMT EXCLUSIVE PETALING JAYA: PKR supreme council member Tan Kee Kwong was recently thrust into the political spotlight after posting an open letter to Prime Minister Najib Tun Razak in early June.
In his letter, the former deputy minister of land and cooperatives accused Najib and the government of mismanaging Federal Land Development Authority (Felda) funds.
The former Segambut MP and WP Gerakan chief alleged that Felda’s cash reserves had dropped by more than RM4 billion to about RM200 million this year.
Tan also questioned the need for the government-linked company to invest RM660 million in a “five-star” office building.
Government reaction to the allegation was both swift and heavy-handed. Former Felda liaison director and Deputy Minister in the Prime Minister’s Department, Ahmad Maslan, announced that Felda was going to sue Suara Keadilan and several PKR party leaders, including Tan, for RM200 million.
Several hours later, the party organ was summoned to the Home Ministry in Putrajaya. But the meeting was to no avail, as Suara Keadilan found its printing licence suspended.
However, no PKR party leader to date has received a letter from Felda. In a two-part interview, Tan talks to FMT about his grievances with the Najib administration.
FMT: Tell us about your time as deputy minister of land and cooperatives.
Tan: In 1999, I was given the task of answering questions about Felda. That’s why I know so much about Felda. I was the only one in the administration who answered questions. We also looked after strata titles as well.
You said you’re the only one who answered questions about Felda?
Yes, my minister gave me the sole responsibility.
Who was your minister at the time?
Kasitah Gaddam.
What was happening to Felda during your time as deputy minister?
Actually, Felda was a shining example of giving land to the landless. It was a scheme where they built a house, planted rubber trees and oil palm for them… 10-acre lots. And slowly over the years, they paid back. That’s fine. Very, very successful.
Until about 1993, with the original settlers getting old, they (Felda) realised they cannot work on the ladang kecil anymore. So they changed their plan, and any new land opened after 1993 became Felda plantations, what they call Felda corporate.
So what did you notice?
At that time, Felda was a very fine organisation. Its chairman for many years was Raja Muhammad Alias. So we just left it alone, and it was fine.
So you just let it go on, because it obviously gave returns.
Well, you know the figures. In 2001, the assets of Felda were RM7 billion. Cash in the bank, RM4.5 billion. Loans, zero. Not one sen. How can an entity with this type of balance sheet go so wrong?
And how is it that with the record price of oil palm recently, other companies such as IOI are recording profits while Felda’s cash reserves are going down? It doesn’t make sense! You don’t need to be an oil palm expert. What happened to the reserves?
So you think the cash reserves should be going up.
Of course! Definitely! My advice to Najib and gang is: stick to your core business. You don’t need Felda Global Ventures and all that rubbish. How can you justify your six-star building? How is it going to help the settlers? Felda is about the settlers, not for making money!
Najib said that the cash reserves went down, but the assets went up.
Assets, what are the assets? Don’t forget: if tomorrow India doesn’t want to buy your palm oil, you’ve got no cash flow. How are you going to run the company? And also loans from EPF. Felda is so big, why does it need loans from anybody?
Felda borrowed money from EPF?
Yes. Felda Global Ventures (borrowed money)… Felda Glocal, as they say. You just stick to oil palm, day and night it will make profit for you. Why on earth do you need to go Felda Global?
How do you justify the RM500 million spent in Boston and Cincinnati? Tell us! What is Twin Rivers Technology?
