Tan: Najib's Government meddling caused Felda's overruns

With this new revelation, Malaysians need to worry what is going to happen to Sime Darby with the latest appointment of its 'incapable' Chief Executive.

Former deputy minister Tan Kee Kwong has urged the federal government to come clean about Felda and to stop interfering in the running of the government-linked company.

“Do not forget the very reason why Felda was started (was to undertake) social responsibilities,” reminded Tan (right).

He said this in a blog posting following his open letter dated June 6, where he publicly accused Prime Minister Najib Abdul Razak of “single-handedly destroying” Felda's prudent management and the siphoning away of its wealth.

Continuing his attack on what he claimed as “government meddling” in the state-owned plantation firm, he listed in his blog instances of mismanagement that the government he allegedly misled Parliament and the public about.

Tan, who is now in the opposition PKR of former deputy prime minister Anwar Ibrahim, based his accusations on his experience in 2004 while serving as then-deputy to Land and Cooperatives Minister Kasitah Gadam in charge of all Felda matters.

Tan went on to lament the government-linked firm's decline to its present pathetic state, from what he described was once a stellar example of how such a project should be like.

Felda, he said, used to be the biggest producer of crude palm oil in the world and led the way in developing new areas and distributing land to the landless.

“By their direct interference, the evil and corrupt political masters have managed to destroy in a short space of time what was a very well-run GLC,” said Tan.

He contended that as a GLC, Felda's wealth belonged to to all the country's citizens. Now, however, it has been squandered to enrich the few.

Senseless overspending

Tan pointed to the questionable and sudden reversal of previously cost-cutting moves in 2006 to build the firm's new 29-floor headquarters for RM220 million on their own land in Jalan Semarak as one example of government meddling.

The plan, according to Tan, had already been under way.

“(The) tender to demolish their old building was called. Even the former PM Pak Lah (Abdullah Ahmad Badawi) was given a date to officiate the ground breaking ceremony.

“This plan of course makes much more sense than to spend RM662 million to pay for a new building in the KLCC area where land cost is the highest in the whole of Malaysia,” said the former federal minister.

He also detailed how this decision came about in a “clandestine” meeting in 2007 between Najib, the late Nassimudin of Naza-TTDI and then Felda managing director Mohd Bakke Salleh that bypassed Felda's chairperson and director-general.

“They decided to abandon the cost-effective plan to build on their own land, but instead invested in a 5-star building at a 5-star price!” alleged Tan.

Lambasting the lack of accountability, Tan asked if this was the pattern of how GLCs were being run.

“Why bother to have a chairman or board at all?” he asked.

Welfare or deception?

Tan then attacked the government's recent reply in Parliament on Felda's "missing" RM2.7 billion.

Last Wednesday, Deputy Minister in the Prime Minister's Department Ahmad Maslan said that the missing funds were used for welfare purpose.

“What utter rubbish. In fact, it was an attempt to mislead the Parliament, the rakyat and worse of all, the 113,000 Felda settlers,” said Tan, zeroing in on the supposed allocation for crops.

According to Tan, for the past 30 years, there had already been a fund in place for replanting called 'Tabung Tanam Semula'.

For every metric tonne of fresh palm bunch sold to Felda's oil palm million, RM3 to RM5 is deducted and channelled into the fund, depending on the market price of crude palm oil.

This money belongs to the settlers and an average of RM15,000 is set aside when it is needed to replant oil palm or rubber for each of Felda's 113,000 settlers, totalling RM1.7 billion.

“Ahmad Maslan, your answer in parliament is totally misleading. That sum belongs to the settlers not to Felda. In fact, Felda should be paying interest back to the settlers for holding their money for such a long time,” said Tan.

'Failed US investment'

Tan also blasted the allegedly failed RM500 million Felda Global Ventures investment in Boston and Cincinatti in the US.

The investment arm, formed three years ago, was the brainchild of Mohd Bakke. According to Tan, it was a fiasco that never generated returns for Felda.

“Please tell us exactly what this Twin Rivers Inc is all about. Or is this another attempt to siphon money out, like what happened to the Euro100 million commission paid to purchase French submarines for our navy?” he quizzed.

How could Bakke, who he alleged managed Felda poorly, be given the star role with his new appointment as Sime Darby chief, asked Tan.

“Is it because he is an 'obedient servant'?” asked Tan.

courtesy of Malaysiakini