'Felcra stopped paying living aid to settlers due to tower project'

PARLIAMENT | Felcra Bhd had to temporarily postpone paying out living aid to settlers, as some RM500 million meant for the purpose had to be diverted to the Menara Felcra project in Jalan Semarak in Kuala Lumpur. 

Deputy Economic Affairs Minister Mohd Radzi Md Jidin said this during the question and answer session in the Dewan Rakyat while answering Tajuddin Abdul Rahman (BN-Pasir Salak), who had asked why the aid for Felcra settlers had been cut off.

Radzi pointed out that the aid was given to settlers to help their monthly expenses when their replanting programmes do not generate income.

However, the scheme was postponed beginning August last year, due to Felcra's weak financial situation.

"This is due to the fall in the prices of the commodity, as well as the legacy of the previous (BN) administration.

"This temporary postponement only applies to payouts involving Felcra's own funds, while other schemes, such as the one using settlers' contributions, have been directly paid out to the beneficiaries.

"Since Felcra is currently in dire financial straits, it is constantly working towards securing funding from either the government or financial institutions, to afford to pay out the living aid. Felcra is confident the problem can be settled soon," Radzi said.

To an additional question from Mukhriz Mahathir (Harapan-Jerlun) on how a once-cash rich Felcra had fallen into debt, Radzi cited the mixed development project on Felcra's 1.63ha land in Jalan Semarak, Kuala Lumpur, which includes the Menara Felcra office tower, as one of the reasons.

"(Being involved in the) project in Jalan Semarak is not one of Felcra's goals. It definitely plays a factor because the company's finances have to be diverted towards the project, and that is a fact," he stressed.

The discrepancies in the project, which goes against Felcra's main cause for existence, have undergone a forensic audit and the new management has reported them to the MACC, Radzi added.  - Mkini