KPF members dismayed over delayed payments for share sales

 

Members of Koperasi Permodalan Felda Bhd (KPF) are overcome with sadness and discontent after discovering that they could not access the money they had invested for personal use and emergencies.

Nor Liza Ismail, 64, said she had sold her cooperative shares in August last year for a figure amounting to RM70,000 but had only received two payments totalling RM10,000 from KPF.

She was disappointed as she needed the money to fund her husband’s nasal cancer treatment.

“I felt sad and depressed and because of that, I had to look for cheaper treatment. But the cost of my husband’s treatment and needs every month reaches hundreds of ringgit,” she told Malaysiakini.

Nor Liza, a former Felda Global Ventures Holdings Bhd (FGV) employee, said that she never thought this could happen because she was always confident about investing in KPF throughout her 37 years of service with the company.

“I really love KPF and we (KPF members) believed in the management. We were educated about investing in KPF while working there but we are now disappointed over what has happened.

“It’s okay if we were rich people, but most of us are not happy. We were loyal to KPF but this is what we received in return. The confidence that used to be high has now collapsed and melted,” she lamented.

Desperate for cash

In February, a group of KPF members stormed the company’s office in Jalan Semarak, Kuala Lumpur to demand an explanation for the delay in the payment of share sales and dividends.

KPF then assured them it would complete its payment from February to July 2023 by the end of March 2024.

Payments for the sale of the remaining shares would be made periodically according to the availability of cash and priority would be given to applicants who urgently needed it, it said.

Nor Liza Ismail

KPF said it was facing a cash flow problem due to share redemption exceeding the subscription amount and having to use the cash allocated for current business operations, which affected its investment and business activities.

Meanwhile, Erabiah Abd Samad, 66, shared how her son was forced to sell his car so that he could continue his studies as a cadet pilot at a private college.

She said he had to look for another source of income after his share sale payment was delayed for almost nine months.

“I had to withdraw savings from Tabung Haji, play kutu, and my son also had to sell his car to cover his tuition fee deposit.

“I’m very disappointed because I am in need. Fortunately, my son did not lose his spirit to pursue his dreams,” he said.

The late husband of Samsiah Mis, another depositor, had invested all of his savings in KPF with the hope that the money could be used in times of emergency or to meet urgent needs.

But she became upset when the money saved could not be used for her son’s wedding.

“I am not strong enough to work because of my health problems. In addition to my children’s weddings, I want to use (the money) for my other children’s health treatment and school expenses,” said the 53-year-old single mother of eight.

“Now, when the time has come to spend (the money), I can’t. It’s not other people’s money that I (want to) take out, it’s my own money,” she added.

C Sugumaran and his wife

C Sugumaran, 50, also hopes that his payment will be issued as soon as possible as he needs the money to cover the cost of his wife’s spinal surgery following a slipped disc.

“The doctor advised that my wife undergo surgery immediately for fear that the pain she is experiencing will get worse,” he said.

No clear payment deadline

KPF Members’ Community Action Committee chairperson Mohammad Rosli Yaakob said a total of 142 KPF members who sold their shares from January to December 2023 have not yet received full payment.

This is based on data his team had compiled from KPF members over WhatsApp since January.

“Payment was made by KPF at the end of March for the sale of shares from February to July 2023. However, there are still some individuals in the first group who have not received payment,” Rosli said.

Until now KPF has not set a payment deadline for share sales from August 2023 onwards, he added.

“KPF only said that payments will be made according to cash availability and will be made periodically.

“Therefore, we ask KPF to set a deadline for when this second group will receive their payment,” he said.

Malaysiakini is attempting to contact KPF for a response to these complaints.

KPF was established on July 1, 1980 to be a savings and investment vessel for Felda settlers while aiming to provide opportunities for them to participate in owning equity in Felda companies.

In its heyday, KPF used to give an annual dividend as high as 18 percent to its members consisting of settlers and Felda staff. It was also named the best cooperative in Malaysia several times.

However, KPF’s performance began to decline since FGV’s listing on the stock exchange in 2012, which saw the cooperative divest 51 percent of its stake in Felda Holding Bhd (FHB) to FGV. Before that, FHB was considered KPF’s “golden goose”. - Mkini