'Windfall for banks, not Felda settlers'

PKR vice president Nurul Izzah Anwar said prime minister Najib Razak’s promise of a windfall to settlers following the controversial listing of Felda Global Venture Holdings was in fact good news for investment bankers.

The Lembah Pantai member of parliament said she had information that settlers would be required to take loans from specific bank, even if the settlers had the money, to purchase the initial public offerings (IPO) shares of FGVH.

“Although the margin for those loans is 100 percent, but the repayment period is only 6 months, in other words, the settlers and employees must repay the full loan with their savings when they receive the pink or blue form or using profit from the sale of FGVH shares at open market to finance the loan before the 6 months tenure,” she said in a statement made available to Harakahdaily.

Nurul said despite the waiver of RM200 stamping fees, settlers and employees of Felda must pay RM200 bank fees and charges after their loans were approved or RM100 as rebate if the loans can be repaid upon receipt of the pink or blue forms.

“The daily rest interest of 5 percent annually is 2.5 times higher than the soft loan to National Feedlot Corporation at 2 percent," she explained. "So it is clear what is being regarded by Najib as windfall is actually leaning towards opening new business opportunities and chances for financial institutions to profit from Felda’s settlers and employees’ hardwork. Especially the five investment banks appointed to finance the purchase of shares and a few shares brokers appointed to facilitate the selling and buying of shares at open market.”

Nurul pointed out the cost to be borne by FGVH in listing and advisory consultation for the listing by two domestic investment banks and three foreign banks, namely Maybank Investment, CIMB Investment, Morgan Stanley, JP Morgan and Deutsche Bank.

“In fact, such approach will result in liquidation of Bumiputera’s equity in FGVH once settlers and employees of Felda dispose their shares in open market to finance their loans. Although KPF (Koperasi Permodalan Felda) will remain as the biggest shareholders, along with Permodalan Nasional Berhad (PNB), Tabung Haji and Employee Provident Fund (EPF) and foreign companies are only offered a small sum of share, but there’s nothing to stop any investors to buy FGVH from open markets,” she warned.

She added that the fate of second and third generation of settlers was in limbo, as their hope to develop lands would be diminished after 360,067 hectares of Felda Plantation land being mortgaged to FGVH for 99 years for the listing to take place.

“Najib must explain every mechanism raised to dispel the fears of many, and focus on the rights and interests of the unfortunate group,” she urged.

-Harakahdaily