An official letter has been sent to the Indonesian government seeking special attention to a deal made by Felda that could result in RM2.5 billion in losses.
Prime Minister Anwar Ibrahim said he had sent an official letter to Indonesian President Prabowo Subianto in relation to Felda’s investments in PT Eagle High Plantations Tbk (EHP).
He also said the move was prompted by the potential for financial losses of up to RM2.5 billion stemming from the previous management’s decision, with expected returns now likely to be only around RM200 million.
“This investment (EHP) is subject to court proceedings in Indonesia. I have written to Prabowo asking him to look into the matter.
“If it is not addressed, we could potentially lose RM2.5 billion and recover only RM200 million,” he said.
According to news reports, Felda has yet to recover the money as EHP is still contesting it in the Indonesian courts.
Anwar said this during a meet-and-greet session with Felda’s senior management and managers at Hotel Tenera in Bangi today.
Also present were Felda chairperson Ahmad Badri Zahir and director-general Suzana Idayu Wati Osman.
Challenges in recovery efforts
Anwar said the disclosure of the financial crisis figures was intended to ensure Felda’s management at all levels understood the scale of the challenges it faces in its recovery efforts.
“I want the managers to understand how difficult the recovery will be. This is not a problem caused by the managers.
“What does a Felda manager in Pahang or Johor have to do with it? But we all have to bear the consequences, and that is the problem. So, they need to understand this.
“Issues involving investigations, enforcement and the courts are separate matters. But I want the managers to understand the full extent of these problems. I told Suzana that they need to understand the situation,” he added.
Anwar said all levels of management needed to understand the agency’s actual problems and avoid being influenced by narratives or propaganda that downplay governance issues.
“What I want to emphasise is that all Felda managers must fully understand the issues.
“They should not become discouraged, but recognise that these problems must be tackled,” he said.
On broader recovery efforts, Anwar assured that the government is committed to accelerating basic welfare projects, including funding to repair the homes of managers and settlers, rather than waiting until next year’s budget.
He also stressed that the emphasis on governance, integrity and accountability is not intended to find fault with any particular party, but to safeguard the public trust and ensure Felda regains its standing as an institution the country can be proud of.
- Bernama
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