Shahrir orders FIC’s entire board of directors to quit

(The Sun Daily) – Newly-appointed Federal Land Development Authority (Felda) chairman Tan Sri Shahrir Abdul Samad (pix) has hit the ground running in his efforts to stop leakage and wastage.

Upon taking the helm, Shahrir immediately ordered the entire board of directors of Felda Investment Corporation Sdn Bhd (FIC) to resign.

“We must have good corporate governance, so I’ve asked them all to resign. I will fill the vacant directors’ posts.”

He has also sold Felda’s shares in Maybank for RM280 million to use for its operations.

“When I was informed of this appointment, I told the prime minister there will be ‘blood in the streets’ once I take over Felda as its chairman,” Shahrir said at his first press conference since taking over from Tan Sri Mohd Isa Abdul Samad, who completed his tenure on Jan 6.

Shahrir said the FIC board had thrown money down the drain as many of the projects undertaken by the company had caused massive losses to Felda, citing as examples its investments in Barakah Offshore Petroleum, Encorp Berhad and a sturgeon project.

However, he said, these projects cannot be sold at the moment as the people involved are being investigated by the Malaysian Anti-Corruption Commission (MACC).

“To ensure there is no repeat of the same mess, better governance has to be put in place while the Felda board takes a closer look at the activities of FIC,” he said, stressing that whatever investments Felda makes must benefit it and the settlers.

“Our aim is to have enough money to carry out our activities to help settlers replant, provide them with money while waiting for the plantations to bear fruit, provide them with housing loans and other related activities” he said, adding that Felda also has a duty to look after the children of settlers and help them wherever possible.

He said there are also plans to sell other assets such as a hotel in London for more than RM5 million, stressing that all sales must bring good returns on investments.

On the purchase of Eagle Heights, he said it involved government borrowings but the settlers will be protected as they are not liable for the borrowing.

“Whatever investments made by Felda, the settlers will be protected as their assets are owned by them and not Felda,” he said, adding that money earned by settlers from their plantations is 100% theirs and has nothing to do with Felda.

Meanwhile, Shahrir also sees an urgent need to dispel confusion among certain quarters over the difference between Felda and Felda Global Ventures (FGV).

“The problem with Felda is more of perception and misunderstanding. Many people cannot distinguish between FGV, a company listed on Bursa Malaysia, and Felda, the land development authority.

“The misunderstanding and confusion is not only among the settlers themselves, but also those considered as world business leaders,” he added.