Felda CONSPIRACY alarm sounded

The storm over the listing of Felda Global Ventures Berhad at the stock market is expected to take another level amid a warning that the Felda cooperative Koperasi Permodalan Felda Berhad would eventually be included as part of FGV.

According to National Felda Settlers’ Children Association chairman Mazlan Aliman, the latest speculation was triggered by the sudden decision by Malaysian Cooperative Societies Commission (MCSC) to nullify KPF’s June 20 annual general meeting.

Mazlan cited a letter issued by MCSC on Tuesday, December 4, calling for KPF to hold their AGM before the end of the year, adding that something was amiss when it was stated that an AGM would be called on December 27 by MCSC.

“To bring KPF in (to part of FGV) is difficult given the existing regulation unless there is a conspiracy to nullify KPF’s AGM and to ensure two persons, Isa (Abdul Samad, Felda chairman) and Faizoull (Ahmad, acting general-director) are included in KPF,” Mazlan claimed during a press conference.

The claim also comes amid FGV's share price hovering around its initial public offering price at a lowly RM4.55, barely half a year after making its stock market debut.

Isa’s nomination to KPF’s board was rejected in the cooperative’s meeting last June after the court granted an interim stay order on his KPF membership.

Under KPF regulations, membership is only open to either a settler or his family member, besides the requirement that one has been a cooperative member for at least two years before being eligible to be appointed to the board, all of which Isa fails to fulfill.

Mazlan alleged that a signature drive fueled by bribery was currently underway to support a memorandum requesting Isa to lead KPF.

KPF was left out in the listing plan of FGV following protests from its members fearing that the profit-making cooperative would be sidelined. Under the initial plan, KPF was set to receive 37 percent stake in FGV in return for its 51 percent stake in Felda Holdings.

Should the latest conspiracy succeed, said Mazlan, KPF would transfer its 22 percent stake in Felda Holdings to FGV, making the latter the majority shareholder.

“In return, KPF will be offered a 10 percent stake (in FGV), but through Felda Asset Holding led by Isa. KPF will lose control of Felda Holdings. All investments and plans of the cooperative will be stalled. Isa will decide from A to Z. 1.6 million settlers can only witness what will be done by Isa and his crews,” added Mazlan.

The PAS central committee member also warned that the move would likely end the customary 12 to 15 percent dividend payout by KPF.

“Worse, if KPF’s inclusion in FGV fails to boost FGV’s shares price, KPF will go down together with FGV.”

FGV was listed on June 28, and its share price soared to RM5.55 before dipping to its lowest point RM4.50 last Tuesday. The share closed at RM4.57 at noon today.

-Harakahdaily