Anak to block Felda takeover over swindle fears

By G. Manimaran
Bahasa Malaysia Editor

November 09, 2011

Mazlan’s Anak is contesting Isa’s appointment as KPF chief. — File pic

KUALA LUMPUR, Nov 9 — A group of settlers will mount a legal challenge to block Felda Global Ventures (FGV) from taking over Felda Holdings Bhd over fears that more than 200,000 smallholders tilling its land development schemes will be short-changed by the deal.

Under the Najib administration’s proposal to list FGV, settlers will swap their 51 per cent stake in Felda Holdings — which made RM760 million last year — for a 61 per cent share in FGV, whose international subsidiaries have reportedly lost RM500 million up to 2010.

The National Felda Settlers’ Children’s Association (Anak) has already lodged a complaint with the Co-operatives Commission of Malaysia (CCM) last month over Tan Sri Isa Samad’s appointment as chief of Felda Investment Co-operative (KPF), the settlers’ co-operative that owns the majority stake in Felda Holdings that manages the Federal Land Development Authority’s (Felda) 880,000-hectare plantation landbank across the country.

Anak chief Mazlan Aliman told The Malaysian Insider yesterday that if Isa, who is also the federal land development agency’s chief, is allowed by a CCM tribunal to chair the settlers’ co-operative, his group will file an injunction to stop a lease agreement handing over Felda Holdings’ land to FGV.

The PAS central committee member said if the tribunal rules that Isa cannot be KPF chief, then the lease agreement, a stepping stone towards the listing of FGV on Bursa Malaysia, would also invalid.

“We have made a complaint to the CCM last month. Other parties have also contested Isa’s position as chairman of KPF.

“Until our complaint is heard and ruled on by the tribunal, the lease agreement cannot go ahead,” he said.

The appointment of Isa as KPF chairman is being challenged on the grounds that the former Umno vice president is a “contract worker” and not a member of the co-operative whose membership is limited to settlers and permanent Felda staff.

Mazlan previously stated Isa’s “back door” appointment was to enable KPF’s RM400 million equity in Felda Holdings to be transferred into FGV.

The listing of FGV, announced last month in Budget 2012, is expected to take place in the middle of next year.

FGV subsidiaries such as Felda Iffco Sdn Bhd, Felda Global Technologies, Felda Global Ventures Middle East and Felda Global Ventures Arabia are reported to have chalked up accumulated losses of around RM500 million up to last year.

The profitable Felda Holdings has a workforce of some 19,000 employees, with a labour force of 46,795 workers at 300 estates, 70 palm oil mills, seven refineries, four kernel crushing plants, 13 rubber factories, manufacturing plants and several logistic and bulking installations spread throughout Malaysia and several locations overseas.