Rafizi lodges report claiming Felda did not disclose all subsidiaries

Pandan MP claims Felda is obliged to do so under Companies Act.

KUALA LUMPUR: Pandan MP Rafizi Ramli today lodged a police report against the Federal Land Development Authority (Felda) and its subsidiaries, alleging a breach of the law when they failed to disclose all subsidiary companies under it.

Rafizi lodged the report at the Dang Wangi district police headquarters.

He claimed that under Note of 44(a) Felda’s 2015 financial statement, Felda was obliged under the Companies Act to disclose every and all of its subsidiaries, whether wholly owned or partially owned, around the world.

“While the disclosure and information given to FIC Global Ltd were incorrect, whether it was deliberate or not has to be established, but nothing was said at all about FIC London Hotel Pvt Ltd (FICLH),” he told reporters here.

He said that in the financial statement on page 281, Note 39(d)(viii), it was established that a loan worth £17.5 million (RM97.7 million) was taken and charged against FICLH, the subsidiary of Felda that owned Grand Plaza Kensington Hotel.

“But the financial statement that was audited gives a picture that FICLH is not a subsidiary of Felda and that FIC Global Ltd is a fully owned subsidiary of Felda that was established in the United Kingdom,” said Rafizi.

He said his findings from Companies House in the United Kingdom(UK) revealed that FIC Global Ltd did not exist as a company in the UK but was instead incorporated in the British Virgin Islands (BIV).

He said this showed that the hotel was not owned by a Felda subsidiary that was set up in the UK, as stated in Felda’s audited 2014-2015 financial statements.

Rafizi said no one could verify the true owner of FICLH, that was registered in BIV.

The PKR vice-president said the use of the offshore company, complicated everything because, by law, any company or entity incorporated in BVI was not required by law to file anything.

“You actually don’t even have to tell BVI who owns the company. So, basically, no one knows who pays and who owns the company, except for the lawyer who incorporated the company.

“That’s why Felda is going to be the laughing stock of the world if Felda keeps saying it owns this company.

“Because everyone knows that no one knows who exactly owns an offshore company unless you get the lawyer from London to come here and open the file and show one by one,” he said.

Yesterday, FIC chairman Syed Mohamed Syed Ibrahim said Felda London Hotel (Private) Limited (FLH) was the sole owner of The Park City Grand Plaza Kensington Hotel in London while FIC Global Limited owned Felda House and Grand Felda House, both providing student accommodation in London.

Syed Mohamed said he hoped the explanation would clear the air over the confusion and negative perception of the company being circulated by certain quarters.

“I would like to explain that when FIC decided to invest in the United Kingdom (UK), we established FIC London Hotel Pte Limited and registered the company in the British Virgin Islands for the purpose of investment. This is the norm in the foreign investment structure of the UK, to maximise the tax benefits.

“After that, there were changes in the investment structure and FIC established another company, Felda London Hotel (Private) Limited (FLH).

“Since we have another platform, the first company which was left dormant was struck off by the UK authorities,” he said refuting Rafizi’s claim that the owner of the Grand Plaza Kensington Hotel in London was FICLH, which was already closed. -FMT