NAJIB’S FELDA WORSE THAN NAJIB’S 1MDB – ISA SAMAD WORSE THAN JHO LOW? UN-DESCRIBABLE ‘MASSIVE, MASSIVE’ THIEVERY EXPOSED – FELDA SETTLERS BURN WHILE NAJIB, ISA & HENCHMEN FIDDLE – FROM RM8 BILLION SURPLUS, FELDA RESERVES RUN DOWN TO RM9 BILLION DEFICIT

WITH the world fixated on the 1Malaysia Development Bhd scandal, the “massive fraud” involving Felda went almost unnoticed, said prominent economist Jomo Kwame Sundaram.

The former Council of Eminent Persons member said the land development agency went from being flush with cash to its current state of deficit due to fraud that took place at taxpayers’ expense.

“Massive fraud had taken place at taxpayers’ expense as far as Felda is concerned.

“When (Muhammad) Alias (Raja Muhammad Ali) stepped down as Felda chairman, he left a surplus of RM8 billion to RM9 billion. Now, the deficit exceeds that amount because we haven’t calculated all the losses the director-general is alleging.

“It is a massive, massive fraud. How can you run down the company from an RM8 billion-plus surplus to an RM8 billion-plus deficit?

“It was all done within a period of 17 to 18 years,” he said on the sidelines of the launch of a Khazanah Research Institute report, titled “The Status of the Padi and Rice Industry in Malaysia”, today.

Jomo said while the world is fixated on the 1MDB saga, there are other cases of corruption, fraud and mismanagement in Malaysia that must be exposed.

“The problem is, everyone is focusing on 1MDB, (but) there are other cases of massive fraud that have taken place, (such as) the East Coast Rail Link and so on… which need to be exposed.”

The government today announced that it has allocated RM6.23 billion to rescue Felda from its financial troubles.

Economic Affairs Minister Mohamed Azmin Ali, when tabling the Felda White Paper in Parliament, revealed, among others, that the administration of former prime minister Najib Razak used RM2.7 billion allocated for the agency to buy support in general elections.

Felda’s problems came as the agency diversified using profits made when palm oil prices were high, setting up corporate entities to handle non-plantation-related businesses.

In 2009, when Najib became prime minister, the group’s debt was RM1.5 billion. As of last year, the amount was RM8 billion.

Felda’s troubles can be traced back to when former Negri Sembilan menteri besar Mohd Isa Abdul Samad was its chairman, from 2011 to 2017. He has been charged with criminal breach of trust and receiving bribes over the purchase of a Kuching hotel by the agency’s subsidiary, Felda Investment Corp.

Its woes also include the listing of Felda Global Ventures Holdings, which has lost 60% of its share value.

Additionally, Felda made the controversial purchase of stakes in Eagle High Plantation, losing an estimated RM1.7 billion in the deal with Indonesian tycoon Peter Sondakh, who is an associate of Najib.

The agency has been unable to pay settlers on time after each harvest of fresh fruit bunches. Settlers themselves are swaddled with debt they owe Felda for loans taken out for replantation schemes.

THE MALAYSIAN INSIGHT