The 2025 Auditor-General’s Report Series 2 has flagged Felcra over the lease and purchase of four oil palm estates without proper board approval or expert review.
The 2025 Auditor-General’s Report Series 2, which was tabled in the Dewan Rakyat in July, flagged Felcra over the lease and purchase of four oil palm estates worth RM241.76 million without proper board approval or expert review.
Law and institutional reform minister Azalina Othman Said said MACC had taken note of the audit report and is probing the matter.
“MACC is unable to disclose details of the investigation in accordance with Subsection 29(4) of the MACC Act 2009,” she said in a written parliamentary reply.
“MACC remains committed to ensuring that all allegations of abuse of power, misconduct, and corruption are addressed firmly and transparently to ensure that the nation’s governance remains at the highest level, thereby restoring public confidence in the integrity of public institutions.”
Azalina was responding to a question by Machang MP Wan Ahmad Fayhsal Wan Ahmad Kamal on whether MACC had opened an investigation into Felcra based on the auditor-general’s report.
In July, Auditor-General Wan Suraya Wan Radzi said Felcra’s decision to lease three estates in Kelantan, and purchase another estate in Sabah, pointed to poor governance.
She said there were serious irregularities and weaknesses in the procurement process, price valuation, yield performance, and compliance with board resolutions and agreements.
Wan Suraya noted that the acquisition of the RM62.29 million Telupid estate in Sabah was approved despite objections from board members.
It was also approved despite a viability report finding the land unsuitable for oil palm cultivation due to its terrain and soil conditions.
Despite Felcra’s board deciding to defer the purchase and appoint an external consultant, the acquisition was approved 22 days later without the consultant being engaged.
Wan Suraya urged Felcra to strengthen its internal controls, properly document all board decisions, and strictly follow procurement procedures in future land acquisitions.
She also said Felcra must strengthen its standards governing high-value procurements to “prevent wastage and ensure value for money”.
Felcra is a government agency established in 1966 with the aim of managing, developing, and optimising agricultural land to help rural communities boost their income and improve their standard of living.
It is wholly owned by the Minister of Finance Inc and operates under the purview of the rural and regional development ministry. - FMT
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