Felda begins disposal of assets to accommodate liabilities

06 Dec 2018 / 20:00 H.

KUALA LUMPUR: The Federal Land Development Authority (Felda), which is embroiled in allegations of mismanagement and mounting debts, has commenced the sale of non-strategic assets to accommodate its liabilities, says chairman Tan Sri Megat Zaharuddin Megat Mohd Nor.

“We have started the process of selling non-strategic assets both within and outside the country and this process will probably runs until the middle or end of next year.

“It is hoped that the prices we get from the sales of these assets can accommodate our liabilities, as well as help ease the burden of settlers who are saddled with low oil palm prices,“ he told reporters on the sidelines of the Kolej Yayasan Felda’s convocation today.

Megat Zaharuddin said Felda has received enquiries from potential buyers for the assets but it was not ready to reveal more information as the sales and purchase agreements needed to be approved by the government.

“We are following good governance to make sure that we give equal opportunity to the interested parties. Those interested must submit their bids,“ he said.

In September, Felda announced the disposal of assets, including hotels, apartments and a student hostel worth about RM2.2 billion, which was expected to help cut its debt to RM6.5 billion by year-end from RM8.05 billion debt as at June 30.