Drop in Felda reserves: Make accounts public

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.