KUALA LUMPUR: Felcra is confident that it will be able to resolve issues with regards to the postponement in the cost of living loans soon.
Economic Affairs deputy minister, Dr Mohd Radzi Md Jidin said the postponement in the issuance of the loan — which has been ongoing since August last year — was due to Felcra’s weak financial position following the drop in the price of commodities and legacy issues inherited from the previous administration.
He said the organisation’s investment in the Menara Felcra project in Jalan Semarak was also one of the reasons for its current financial constraints, as the funds had to be redirected to the project.
Mohd Radzi was replying to a question from Datuk Seri Tajuddin Abdul Rahman (BN-Pasir Salak) and a supplementary question from Datuk Seri Mukhriz Mahathir (PH-Jerlun) during the oral question and answer session at the Dewan Rakyat today.
Tajuddin had asked on the reason why the cost of living loan for Felcra settlers was no longer available, while Mukhriz asked whether Felcra’s financial situation was due to the Menara Felcra project.
“Since Felcra is currently facing a very serious financial situation, it is working hard to obtain loans from the government and/or financial institutions to finance the cost of living loan,” said Mohd Radzi.
He said the loans were sourced from Felcra’s internal funds, whereas the cost of living aid sourced from the savings of participants such as the Risda Replanting Aid (BTSR) and others, had continued to be paid directly to the settlers.
Mohd Radzi was also confident that Felcra’s new board of administration’s strategic new directions (reinvent, re-engineer, re-ignite, rebuild, revisit and restructure) would be able to return Felcra to the original purpose of its establishment. — Bernama