FGV listing: How much did Ethos get?

Prime Minister Najib Tun Razak's enthusiastic support of Felda Global Ventures' listing is anchored in the 'believe' that the PM's Department will receive RM13 billion windfall.

COMMENT

The idea of forming Felda Global Ventures to carry out international businesses was proposed by Ethos Consulting group.

So, can we ask Felda how much they paid Ethos – helmed by Omar Mustapha Ong – to come out with the listing proposal? Will FGV chief executive officer Sabri Ahmad tell us how much Felda paid Ethos?

It must be a large amount, sufficiently large to allow a leading member of Ethos to buy a RM15 million penthouse unit in an upscale condominium.

Also perhaps Sabri can tell everyone how much how much did FGV really lose? We were only told of losses amounting to RM500 million. Is there more?

One thing we do know is, FGV is consistent. It has consistently lost money for five consecutive years.

Perhaps Sabri can disclose fully and honestly, how much FGV lost during those five years.

If indeed FGV lost money over five consecutive years, that would strongly suggest that it is incompetent.

Two, it would also suggest, just as in most GLC’s subsidiary companies, some people got very rich while the companies they helmed suffers financial hemorrhage.

Before FGV comes along and wishes to take Felda Holdings, it must come clean about itself.

RM13 billion for PM’s dept

I understand the biggest beneficiary of the listing would be the PM’s department.

I was told that Sabri had told Najib that the bulk of the money raised will be channeled to the PM’s department.

Najib is elated at the prospects of getting RM13 billion or so. He can go back to Pekan and replace all the dilapidated houses of the rakyat in Pekan.

His generosity will be ululated by the ladies and wanita Umno Pekan for generations to come.

He will use the money to pay Umno division heads and dropped candidates who will otherwise go on the rampage.

That is why the PM supports the listing of an otherwise loss making concern.

What will Felda get? It will get RM8 billion and since it has borrowed money from EPF, it must now pay EPF. The outstanding is about RM3 billion.

If Felda pays RM3 billion, it is left with RM5 billion. From this RM5 billion, it must pay the windfall to Felda settlers- 112,000 of them. That will probably mean another RM2 billion gone.

With the balance RM3 billion, Felda can operate at its current level of providing benefits to the 112,000 settlers in the various Felda schemes for only one year.

After that, it will be reduced to a beggar because Felda’s annual operating cost including staff and its social work in the scheme is RM3 billion.

Mahathir’s style

The next big question is what is the purpose of this listing? Is it an attempt to save a losing business concern (FGV) itself? Is it done to raise money for Felda?

But Felda has a lot of money.

It has the mother lode of financial resources which is provided by their palm oil plantations. Unless you are a super moron, all plantations make money.

Everyone is talking about the good things that come along with the (ahem) ‘heist-ing’ listing. Because everyone can cook up a good story.

Good analysis are a dime a dozen. That fat slob with the lard layered brain can always do that for a fee.

Take MAS for instance. It was making money and doing fine, when suddenly some smart alec suggested that it was good to privatize MAS.

So Tajudin Ramli in the name of service to the nation agreed to take 32% of MAS provided he was given a guarantee over his purchase of the share.

Former Prime Minister Dr Mahathir Mohamad gave him that guarantee in the form of an over-riding indemnity provision to Tajudin protecting him from losses should he mess up the acquisition.

Now, that is the type of captain Mahathir needed to drive his NEP. Daulat Mahathir!

Isa is Mahathir’s ‘captain’

Najib can also give guarantees. He can guarantee when FGV lists, the returns to Felda settlers will be assured.

This loss making business entity promises the moon and stars to Felda settlers.

What is the basis of its promises? It is run by incompetents which is the only thing that can explain why it’s making losses over five years.

It simply doesn’t have the wherewithal to bring the listed and enlarged FGV to new heights.

So how can it makes promises? Because Najib ‘guarantees it’, says Felda group chairman Isa Samad.

Coming from someone who has made a mess of Negeri Sembilan – now that’s something.

Isa is the man of Mahathir’s heart. The captain of the NEP.

We come now to the biggest question about Felda itself. With the listing what will the settlers lose? It will lose the bulk of its revenue. How come?

Secretive lease terms

It will immediately lose the 350,000 hectares of oil palm plantations managed by Felda Plantations. The 350,000 hectares of land will be leased to FGV for 99 years.

Does anyone know about the terms of the lease? We have not seen the terms of the 99 year lease. How will Felda get paid?

It’s said that Felda will get paid every quarter? Why every quarter when FGV makes monthly profits?

If you lease a house or office building, revision of the rentals or lease are done on say, a five year basis.

Why is the lease to FGV revisable only at 20 year intervals?

How can the Felda board and those who manage Felda agree to this scorched earth deal?

The writer is a former Umno state assemblyman but joined DAP earlier this year. He is a FMT columnist.