KUALA LUMPUR – The Federal Land Development Authority (Felda) will present its debt statement to settlers next month through its Replanting Planning Committee, said Datuk Seri Mustapa Mohamed.
The minister in the Prime Minister’s Department issued a written reply on November 11 in the Dewan Rakyat to Shaharizukarnain Abd Kadir (PAS-Setiu), where he said a study on settlers’ debt for December 31 last year has already been prepared.
“As of September 30, the material on settlers’ debt in the December 31, 2019 balance sheet was completed.
“The next process is to present the statement of debt to the settlers through the Replanting Planning Committee, and prepare a debt statement to be published in December.”
The agency’s unaudited financial statement ending December 31, 2019 registered settlers’ total debt before impairment at RM12.8 billion.
The entire debt covers original development, replanting, socio-economic and other loans involving settlers.
On February 25 last year, it was reported that government handouts had made many settlers dependent on Felda loans, causing debt to stack up and leading to a disrupted cash flow.
Then director-general Datuk Othman Omar reportedly said Felda has turned into a “mini-bank” for settlers when their income from palm oil or rubber dips.
Last month, Mustapa said the cabinet had approved for the organisation to issue a RM9.9 billion sukuk and terminated a 99-year land lease agreement for 351,000ha to FGV Holdings Bhd.
It will also restructure debts owed to financial institutions. – The Vibes, November 14, 2020
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