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10 APRIL 2024

Tuesday, January 24, 2017

Pharma firm: Felda paid for Aussie stay of top officer's daughter



A Federal Land Authority (Felda) subsidiary paid for the employment costs and living expenses of its former deputy director-general's daughter in Australia, said Australian firm Gordagen Pharmaceuticals Pty Ltd.
This included the salary of A$128,000, the use of a company car and accommodation at a luxury condominium, Gordagen said in a press statement.
Gordagen said there was a contractual agreement between Felda subsidiary Felda Wellness Corporation (FWC) and the firm that funds sourced from FWC would be used to pay for the daughter's expenses.
However, FWC told the High Court in Malaysia that it was unaware of the contractual agreement, during proceedings which led to a winding-up order against FWC.
"Under a contractual agreement executed by Mohd Nasir Shafion on behalf of FWC, funds sourced from FWC were used to pay for the employment costs and living expenses of Muhammad Sufi Mahbub's daughter, Athirah Sufi, while she was living in Australia.
"All the arrangements were initiated and coordinated by FWC’s officers, Mohd Nasir Shafion and Muhammad Sufi, on behalf of FWC.
"However, during the winding-up proceedings, FWC for reasons best known to itself, attempted to misstate to court that it had no knowledge of this contractual arrangement," Gordagen said in the statement released on March 9, 2016.
Malaysiakini has contacted Felda and is awaiting its response on the matter.
Mohd Nasir was FWC chief executive officer while Muhammad Sufi was then Felda deputy director-general in charge of strategy.
Gordagen's statement was to announce that Gordagen had secured a winding-up order from the High Court of Malaysia against FWC on March 3, 2016. It said FWC owed Gordagen A$652,083.60.
The statement was highlighted by PKR vice-president Rafizi Ramli at a press conference in Kuala Lumpur today.
Rafizi said checks with the Companies Commission of Malaysia found that FWC incurred losses amounting to RM155 million in its two years of operation starting July 2013. It lost RM74 million in the first year, he said.
“How do (Felda settlers) feel after knowing that top Felda officials spent RM155 million in two years, including to pay for the comfortable lifestyle of the daughter of the former Felda Group deputy director-general?” Rafizi asked.
Injunction obtained
In a separate press statement released in May 2015, Gordagen said Athirah was employed in January 2014 as financial manager on Muhammad Sufi's recommendation to assist with dealings with Malaysian investors.
"The recommendation was further made very attractive to Gordagen by Muhammad Sufi arranging for his employer to meet all the expenses relating to the employment of his daughter, including a salary of A$128,000, a company car and a luxury apartment," it said.
She resigned on Nov 13, 2014 but had on Nov 18 that year sent a large cache of confidential information, including the firm's financial data, to her personal e-mail address.
Gordagen secured an injunction from the High Court of Malaysia to stop Athirah from sharing the information to a third party, and Athirah returned the information to Gordagen.
It said it had tried to settle matter amicably but Athirah elected to take the matter to court.
The press statement issued on May 20, 2015 was to announce the injunction. A Bahasa Malaysia version was published by Bernama.
In 2014, FWC signed a memorandum of understanding with Gordagen and various international pharmaceutical firms in its bid to enter the world healthcare and wellness market.
Its partnership with Gordagen was to produce supplements based on naturally occurring tocotrienols.
In 2015, FWC reportedly said it targeted sales of more than RM100 million for the next three years.
This was during FWC's launch in Jempol, Negeri Sembilan by then Felda chairperson Isa Abdul Samad.

"He had the cheek to announce proudly, in front of Felda settlers that FWC was targeting RM100 million. Three months later, FWC had to wind-up after it went bankrupt,” Rafizi said.
Newly-appointed Felda chairperson Shahrir Samad last week admitted there were "leakages" in the federal agency, more specifically in investment arm Felda Investment Corporation Sdn Bhd (FIC).
He said this was why Felda was now forced to look for extra earnings to absorb its losses, which the Public Accounts Committee (PAC) said it must do.- Mkini

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