'Felda's losses could have built homes for settlers'

The losses sustained by the Federal Land Development Authority (Felda) could have been used to build homes for second generation settlers, said PKR's Sikamat assemblyperson Aminuddin Harun. 

Deputy Minister in the Prime Minister's Department Razali Ibrahim yesterday told Parliament there was unrealised losses of RM1.21 billion from Felda's 33.8 percent stake in Felda Global Ventures Bhd (FGV), but this is recorded as investment because FGV is an associate company. 

"If not for these losses, perhaps the second generation settlers' homes could already be enjoyed in Felda, especially in Negri Sembilan where settlers can only see sign boards staked in the lead up to elections," Aminuddin said in a statement. 

He said this is why Pakatan Harapan launched its five-point general election manifesto on Felda, which includes a Royal Commission on Inquiry to trace the losses suffered by the federal agency. 

In replaying to Johari Abdul (PKR-Sungai Petani), Razali said the unrealised losses are recorded as investments in Felda's financial statements in compliance with legal requirements. 

The deputy minister also said that Felda fully supports FGV's efforts to stabilise its share price and cash flow.

"Similar to other countries which Felda has an interest in, Felda does not have the right to interfere with the management of the company.

"Moreover, the company is a public-listed company regulated by Bursa Malaysia and the Securities Commission," he added.

FGV was listed on the KLSE in 2012, raising RM10 billion in what was touted as one of the biggest IPO in the world for that year, second only to Facebook Inc.

The company made its debut at RM4.55 a share, but prices have been on a steady downtrend since. FGV's share price hit a record low of RM1.19 in August 2015.

At the time of writing, FGV shares are trading at RM2.10.- Mkini