'Reversing Felda settlers' debt waiver violates Madani values'

The government has been urged to re-evaluate Felda's decision to withdraw the debt cancellation facility for settlers who took over plantations from the agency's management.

Amanah Youth exco Ridhuan Esa said Felda's decision was not compatible with the values of Malaysia Madani.

"We of the Felda generation are protesting the actions of the Felda management who are trying to reverse the cancellation of the debt on the settlers who took over the management of plantations.

"Felda's actions in trying to reclaim debts that have been written off by the government are clearly against the concept of Malaysia Madani.

"Even as Felda's farm management and financial problems continue to be the main issue and have been raised in Parliament, Felda hastily issued this notice to put pressure on the settlers," he said in a statement today.

Ridhuan was commenting on Felda's action on Dec 1 to issue a debt claim notice to the settlers concerned.

He said the original debt waiver cancellation notice dated Nov 21, had even been extended to settlers who allegedly violated Clause 5 of the agreement, namely taking over the management of the plantation without Felda's permission.

‘One-sided agreement’

Previously, it was reported that Felda set the condition that settlers submit a six-month notice and clear their entire debt to Felda before they could take over the management of the plantations.

However, Ridhuan claimed the agreement signed between Felda and the settlers was seen as very one-sided.

"Settlers cannot make any claims when Felda violates this agreement.

"Failure to manage farms well and provide economic income is the reason for settlers to take over the work of their farms managed by Felda.

"Settlers and their descendants should be given support and consultancy advice by Felda when they are ready to manage their own farms and be independent," he added.

In June, the government wrote off part of Felda settlers’ debts, an initiative started in 2021 worth RM8.3 billion.

The cancellation of this debt occurred when Felda failed to prove the legitimacy and identify the value of the settlers’ debt. This matter was confirmed by the auditor-general in Felda's 2018 financial report.

Felda was given a government-guaranteed sukuk issue worth RM9.9 billion in lieu of the written-off value.

Felda has over 120,000 settlers involved in 317 planned plantations across the country. - Mkini