Felda delisting may cost RM7.8b: Rafizi

PETALING JAYA: The plans to delist Felda Global Ventures Berhad (FGV) could lead to losses of RM7.8 billion, alleged PKR vice-president Rafizi Ramli.
He said the losses will stem from RM2.9 billion that FGV will have to pay out in order to buy back stocks from shareholders.
"There is also the RM2 billion that public funds would have lost from the fall in FGV stock prices and RM2.9 billion that FGV has to spend for payoffs, loan repayments and other expenses," he said.
Speaking at a press conference he said the delisting of Felda is bad, and not delisting it is also bad.
Newly appointed Felda chairman Datuk Seri Shahrir Abdul Samad had said the possibility of FGV being taken off Bursa Malaysia was being studied.
FGV was listed on the stock market in 2012 with an initial public offering (IPO) of RM4.55 and among the major public shareholders were public funds such as Tabung Haji and Kumpulan Wang Persaraan and FGV share prices closed at RM1.76 today.
Rafizi is currently carrying out weekly ceramah sessions at Felda settlements as part of the "Felda Digadaikan" (Felda Sold) roadshow.
Felda Settlers' Children's Association (Anak) president Mazlan Aliman said five members of Anak and five from Parti Pribumi Bersatu Malaysia (Bersatu) will take part in a roadshow while Bersatu chairman Tun Dr Mahathir Mohamad has agreed to join in a separate Felda roadshow dubbed "Jejak Kasih Felda".
"One of the biggest problems facing the settlers is their debt which amounts to 40 to 60% of their earnings," he said.
He said the situation will worsen when commodity prices drop.
Mazlan said some of the settlers owe about RM100,000 to RM150,000 and this money has been owing since they became settlers.
He said this debt is due to the money loaned to settlers, about RM1,000 to RM1,500, during the replanting season.
"It could take between eight to 10 years for a tree to start fruiting or producing, while waiting for this their debt will grow and grow," he said.
Mazlan urged the government to look at ways or come up with some mechanism to help the settlers who are mostly in their 70s.