Exaggerated contracts the source of Felda's problems

MP SPEAKS | Under the previous government led by Dato’ Sri Najib bin Tun Abdul Razak, various luxurious projects and exaggerated contracts were entered into by Felda.

Many of these contracts are the source of Felda's financial problems today, such that now Felda has to seek the Government’s help to keep it afloat. The Government is considering Felda's request for a capital injection of RM6 billion for the sake of more than 120,000 Felda settlers.

In understanding Felda's problems, the Government had engaged accounting firm Messrs Ernst & Young to conduct a forensic audit. Felda also consulted legal firm Messrs Lee Hishammuddin Allen & Gledhill. The findings by the two consultants confirmed that Felda had been a victim of fraud and corporate breaches.

Consistent with the forensic audit, on 8th April 2019, Felda's Director General Othman Omar lodged 2 police reports on Eagle High Plantation Investment (EHP) and the KLVertical City Project (KLVC) which showed criminal misconduct resulting in Felda suffering billions of RM losses.

As Minister of Home Affairs, I have directed the police to investigate this professionally and without fear or favour.

Meantime, Najib (above) has issued statements that are calculated to confuse the public, especially the Malays and Felda settlers. He said the EHP was a strategic investment good for Felda and the country.

It is certainly not strategic to buy at over 300 percent more than the actual price. It is illogical and foolish to say that. What Felda bought for RM2.5 billion is now worth only RM500 million. Felda is bleeding by RM2 billion.

Najib also said that Felda can get out of the EHP investment anytime and make a 6 percent gain because of a put option. That is a lie. Felda tried to exercise the put option mentioned by Najib, but is prevented from doing so. Rajawali has commenced arbitration against Felda in Singapore.

The arbitration is confidential and I cannot comment more. But the fact is Felda cannot exercise the put option so easily the way Najib puts it.

We all know that in corporate fraud, the culprits will hide their hands and will make it appear as if it is a genuine commercial transaction. The Pakatan Harapan Government is committed to expose and hold the culprits who caused the losses to Felda, accountable to face the consequences.

PPBM is committed to explain that the things done to Felda are repeated in other govt agencies and GLCs. All responsible will be held accountable.

MUHYIDDIN MOHD YASSIN is Minister of Home Affairs, MP for Pagoh, and President of Parti Pribumi Bersatu Malaysia.