The future of FELDA after the LISTING

We have to interrupt the series on the Superhuman of Malaysia with this breaking news.

It’s about the Felda FGV listing. The question we should ask all thought leaders of FELDA is this. Why should a loss making business entity, be allowed to do a reverse takeover of FELDA holdings? FGV owns 49% of FELDA Holdings which has been making money all the time. FGV hasn’t got a track record and has no standing at all to come out with this proposal in the first place.

FGV is the business unit formed while Dato Bakee ( who is now Sime Darby CEO) was in FELDA. The idea of forming FGV to carry out international businesses was proposed by Ethos Consulting group. That adds some flavor to the meal.

Can FELDA tell everyone, how much did FGV lose really? We were only told of losses amounting to RM 500 million. One thing we do know is, FGV is consistent. It has CONSISTENTLY lost money for 5 consecutive years. Perhaps Dato Sabri Ahmad can disclose fully and honestly, how much FGV lost during those 5 years. Maybe he has gone to the PM and reported everything is OK sir. Najib is pleased to hear that kind of story.

If FGV lost money over 5 consecutive years that would strongly suggest that it is incompetent. Two, it would also suggest, just as in most GLC’s subsidiary companies, some people got very rich while the companies they helmed suffers financial hemorrhage. Before FGV comes along and wishes to take FELDA Holdings, it must come clean about itself.

The next big question is what is the purpose of this listing? Is it an attempt to save a losing business concern (FGV) itself? Is it done to raise money for FELDA? FELDA has a lot of money. It has the mother lode of financial resource which is provided by their palm oil plantations. Unless you are a super moron, all plantations make money.

Everyone is talking about the good things that come along with the heist-ing listing. Because everyone can cook up a good story. MAS was making money and doing fine, when suddenly some smart alec suggested that it was good to privatize MAS. So Tajuddin Ramli in the name of service to the nation agreed to take 32% of MAS provided he was given a guarantee over his purchase of the share. Mahathir gave him that because he considers Tajudin as a captain that can pilot the NEP objectives.

Likewise you can see the chicken shit analyses over the benefits of the listing. Good analyses are a dime a dozen. That fat slob with the lard layered brain can always do that for a fee. So, can we ask FELDA how much they paid Ethos to come out with the listing proposal? It must be a large amount, sufficiently large to allow a leading member of Ethos to buy a RM 15 million penthouse unit in an upscale condominium.

So, we ask Dato Sabri, how much did FELDA pay Ethos?

Up to this point, we have asked him 2 questions. (1) How much did FGV lose really and (2) how much did FELDA pay Ethos?

This loss making business entity promises the moon and stars to FELDA settlers. What is the basis of its promises? It is run by incompetents which is the only thing that can explain why it’s making losses over 5 years. It simply doesn’t have the wherewithal to bring the listed and enlarged FGV to new heights. So how can it makes promises?

Because the PM guarantees it says Chairman Isa. Coming from someone who has made a mess of Negri Sembilan- now that’s something. Isa is the man of Mahathir’s heart. The captain of the NEP.

The government is bent in seeing the listing. Why the insistence? Ahmad Maslan said the listing exercise will raise RM 21 billion.

How much will FELDA get?

I was told that Dato Sabri told the PM, the bulk of the money raised will be channeled to the PM’s department. The PM is elated at the prospects of getting RM 13 billion or so. He can go back to Pekan and replace all the dilapidated hoses of the rakyat in Pekan. His generosity will be ululated by the ladies and wanita UMNO Pekan for generations to come.

As to FELDA, FELDA will probably get RM 8 billion. That will mean PM department will get around RM 13 billion to allow the PM to play Santa Claus for a long time like in the above example we gave.

What will FELDA do with the RM 8 billion? Since it has borrowed money from EPF, it must now pay EPF. The outstanding is about RM 3 billion. If FELDA pays RM 3 billion, it is left with 5 billion. From this 5 billion, it must pay the windfall to FELDA settlers- 112,000 of them. That will probably mean another RM 2 billion gone.

Yes, my FELDA brothers-It’s not FGV or the government that will pay the windfall. That money comes from FELDA itself out of the profit share it gets from the listing. The biggest beneficiary is the PM’s department which will get some 13 billion from the listing exercise. That is why the PM supports the listing of an otherwise loss making concern.