Drop in Felda reserves: Make accounts public

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Deputy Minister in the Prime Minister’s Department Ahmad Maslan revealed that Felda’s cash reserves had dwindled from RM4.1 billion in 2004 to RM1.4 billion last year.


Photo credit: Utusan/Felda.net

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The agreement to buy Menara Felda at the Platinum Park Site, Jln Stonor, KL, for RM641 million was signed in 2008 and the building was reportedly expected to be completed in four years (2012). Has the full payment for the building be made now? When will the building be ready?

Felda’s cash reserves have dropped by RM2.7 billion in five years. This was explained as follows:

  • RM2 billion for replanting, replanting, revenue deposit and cost of living support for settlers,
  • RM0.6 billion in interest-free housing loans to settlers (What about loan repayments?)
  • RM0.7 billion for the purchase of the 50-storey Menara Felda and
  • RM0.3 billion allocated for special funds for poverty eradication in Sabah.

Ahmad admitted that cash reserves had gone down by RM2.4 billion (not RM2.7 billion?) while the assets has gone up by RM6.2 billion (Is this rise due to revaluation of land and buildings or due to actual assets acquired?)

This information is of course incomplete to draw any conclusions. It leaves many questions unanswered.

  • Isn’t cess collected from the over 100,000 settlers for a replanting fund?
  • At what stage of completion is Menara Felda? (Someone in KL, please check. See image here .) And what is the final cost going to be?

Back in 2008:

KUALA LUMPUR: Federal Land Development Authority (Felda) yesterday signed a sales and purchase agreement with TTDI Development Sdn Bhd for the purchase of a 50-storey office tower for RM640.77mil.

The office tower to be called Menara Felda is the tallest of seven towers in TTDI Development’s RM3.5bil Platinum Park, in Kuala Lumpur City Centre (KLCC). Construction will start this year and is scheduled for completion in four years.

  • Has Felda made investments overseas? How much has this generated?
  • The total unexplained expenditure could be much different from RM2.7 billion. It could be more or it could be less: much would depend on the annual cashflow surpluses or deficits that Felda generated between 2004 and 2009.

The Felda accounts should be made public as this is a matter of public interest. A thorough independent audit is also required.

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ktas09

All documents related to PETRONAS, EPF and FELDA sre under OSA. Is it correct!!! We should ask VK Lingam for this!!! It should be CORRECT!!!CORRECT!!!CORRECT!!!

Toffees

Don’t worry….God is watching…and the time for BN to be buried … in the next GE is very very near . BN is the so despicable that there is no correct or proper word to describe.

Phua Kai Lit

1Amazingly free-spending Malaysia!

Yang

See how the Penan suffer and look at Taib. Can we afford another term for them.. Kick them out next GE

Gerakan K

BN government there will stay until a better alternative arrived. So far, BN is the best available for us.

Other mosquito entities are not up to standard !!!

Yang

And PKR, DAP & PAS = PR are not mosquito party. They are a force to be reckoned. Yes, BN has a lot or mosquito party such as PPP, Makkal Sathi,UPKO, PRS, SPDP and irrelevant party such as MCA, MIC and Gerakan.

Yang

These and many are 52 years of corruptible, deceits and true lies from the UMNO BN & najib government. Make sure we kick them out next GE

donplaypuks

Anil Here’s an extract of Felda’s financials for 2004-2008 published at Hantu Lauts blog: here and at http://hantulautan.blogspot.com/. Note the NTA = Shareholders’ Funds for 2008 is only RM 3.2 billion and that Profit Before Tax for 2008 was RM 820 million. The results for 2009 & 2010 then CANNOT be better than 2008 due to falling palm oil prices (from $4,000 to $2,400) and global recession!! It’s definitely not rocket science. So, for the NTA to rise to $12 or $15 billion in 2010, Felda must either have made an incredible $9 or $12 billion over profit in two… Read more »

Ramesh Laxman

Like all other classified information the government has the unreserved right to make it known only on a need to known basis.

K S Ong

I see a parallel in Felda and Petronas in terms of being cash rich and profitable, which made it possible to perpetuate intentional extravagance and wastages which benefited certain people at the expense of the rest. It is too simplistic to take the cash position in one year and that of a later year and take the difference as depletion of cash. As Husam has mentioned, there were profits during those years which should be accounted for when working this out. End of the day, I can foresee it boiled down to unwise or intentional decisions to profit certain individuals.… Read more »

Johorean

It is not enough just to let rakyat know the asset is valued at RM6.2billion, we need to know what are components used as asset in Felda and what is the current and long-term liability of Felda? Felda can go and acquire bunch of fixed assets through borrowing or using other complex financial instruments to cloud the asset figures. We really need to see the accounts!

Bisa

The Power that Be stripped Felda of its cash reserve so that when the eventual listing (public offering of shares) takes place, it becomes a ‘sick cow’ instead of ‘cash cow’.

Just see how profitable are the major plantation companies in Malaysia…Sime Plantation Division, United Plantations, IOI Corp, KL Kepong, TH Plantation just to name a few…compare their past 5 years with FELDA…’it’s like comparing an ‘apple with mata kucing’