KOPERASI Permodalan FELDA (KPF) is facing fresh questions over its financial dealings with an Arab Saudi company also linked to the losses suffered by Tabung Haji (TH).
The questions were raised by FELDA second- and third-generation member Ridhuan Esa, who pointed to KPF’s financial statements showing its exposure to Al-Rawda Investment for Real Estate Development & Project Management Ltd had grown significantly over the years.
Ridhuan stated KPF records showed the amount owed by Al-Rawda stood at about RM9.86 million in 2015 before rising to RM40.45 million in 2016.
He said the figure linked to Al-Rawda had since grown, with the book value of the financing reported at RM119.38 million in KPF’s 2025 financial statements.
The figures, he added, raised questions about the cooperative’s exposure to the company and its ability to recover the money.
“Many were shocked when the Royal Commission of Inquiry (RCI) revealed the losses suffered by Tabung Haji.
“We thought only Tabung Haji was affected. But KPF is also exposed, having provided financing to the same company,” he said in a statement.
Ridhuan also claimed KPF had taken its dispute with Al-Rawda to international arbitration in an attempt to recover the funds involved.
The actual value of the assets and the amount that can be recovered, however, would depend on KPF’s financial records and the outcome of the legal proceedings.
Ridhuan’s concerns extend beyond the Al-Rawda matter, with questions also raised over KPF’s overall financial position and dividend policy.
He questioned whether dividend payments were fully supported by the cooperative’s actual earnings, warning that paying out more than what was sustainably generated could put pressure on KPF’s capital and cash position.
He also alleged that accounting practices could have delayed the recognition of losses and resulted in assets being presented at values that did not fully reflect their underlying position.
The allegations, he said, should be examined seriously, particularly amid claims that some members had waited between two and three years to recover money from their shares.
Ridhuan urged KPF members and delegates to use the cooperative’s annual general meeting (AGM) to seek answers from its management and board.
He then stressed that members should not judge KPF solely by the dividends they receive, but also consider its financial health, governance, risk management and ability to generate genuine profits.
At the same time, Ridhuan said the answer was not to allow KPF to weaken further.
Instead, he called for the cooperative to be strengthened as an economic institution built by generations of FELDA settlers and employees.
Among his proposals was to expand KPF’s membership to more than two million people within the wider FELDA community, particularly second- and third-generation settlers and FELDA employees.
He also called for board members to be selected based on qualifications, experience and financial expertise rather than political influence.
Ridhuan said bringing in new members and capital could strengthen KPF’s financial position, provided the funds were managed transparently and professionally.
“Don’t just nod, agree and demand higher dividends,” he said.
For Ridhuan, the issue goes beyond the RM119.38 million figure.
He said the controversy concerns the future of an institution built from the contributions of FELDA settlers, and that members deserved a clear account of where their money stood and how much of it could ultimately be recovered. – August 24, 2026
