PETALING JAYA: The Government is shelling out RM77 million for the Federal Land Development Authority (Felda) to help settlers with their outstanding debts for 2018 Finance Minister Lim Guan Eng announced today.
He said that the government has given special attention to the cash flow problems of Felda which has been in critical condition this year.
“Prime Minister Tun Dr Mahathir Mohamad has also paid attention to this and ordered for the payments to be made,“ he said in a statement today.
The RM77 million will be disbursed accordingly:
- RM1.2 million will go to “Khairat kematian” (death benefits) payments to the families of 120 deceased settlers.
- An outstanding payment of RM43 million will be paid to Felda Technoplant Sdn Bhd for farm upgrading works.
- RM32.8 million will be used on cost of living aid and deposits for replanting benefiting 38,000 Felda settlers.
Lim said that the money will be channelled to the Economic Affairs Ministry as it oversees Felda and the ministry will be in charge of disbursing the funds.
Earlier this month, the 2017 Auditor-General’s report had issued an unmodified opinion with an emphasis of matter to Felda — the third year in a row that the A-G has issued an EOM to the agency.
The report said Felda reported a net loss of RM5.73 billion (against RM251.24 million in 2016) and RM4.85 billion (versus RM729.6 million in 2016) at the company and group level, respectively.
The report also pointed out that Felda and the group had cash flow deficits amounting to RM1.2 billion and RM503.49 million, and institutional borrowings of RM7.8 billion and RM12.14 billion.
In August, the government said it was going to present a White Paper on Felda, amid management disorder and high debts.
The White Paper was supposed to be tabled in Dewan Rakyat on Dec 10 but was postponed to sometime next year, on the advice of the Attorney-General’s Chambers, as several legal matters need to be resolved before the paper can be presented, according to Economic Affairs Minister Datuk Seri Azmin Ali.
