[UPDATED] PM releases proof of Felda settlers’ debt write-off

KUALA LUMPUR – Prime Minister Datuk Seri Anwar has released documents showing proof that his government has written off the debts of Felda settlers.

The Prime Minister’s Office released to the media the agreement on Assignment for Financial Service Reserve Account (FSRA) between Felda, the Malaysian government and Amanahraya Trustees Bhd, dated June 26, 2023.

PMO also released a payment order of RM990 million as sukuk to Felda.

“With this, I urge Tan Sri Muhyiddin Yassin to apologise for the slander he has hurled against me,” Anwar said in a statement. 

Anwar’s signature, in his capacity as finance minister, is on the execution page of the agreement as assignee for and on behalf of the government.

The payment order shows that the funds were paid out on July 18. 

Then Felda chairman Tan Sri Idris Jusoh and Felda Director-General Datuk Amiruddin Abdul Satar also signed the agreement, which was witnessed by Deputy Secretary-General of Treasury (Investment) Datuk Anis Rizana Mohd Zainudin. 

The dispute over which government implemented the write-off of RM8.3 billion follows Perikatan Nasional (PN) chairman Muhyiddin’s rebuttal to Anwar who announced on July 7 the write-off as part of a RM1 billion allocation to Felda over 10 years.

Muhyiddin, who was prime minister when the PN government began plans for the restructuring and forgiveness of the settlers’ debts, disputed Anwar’s claim on the matter, sending a legal letter to demand a retraction and apology.

In the legal letter, Muhyiddin’s lawyers said Anwar’s claims insinuated that Muhyiddin was a liar who failed to fulfil his responsibilities as prime minister then.

Anwar has said previously that no allocation of funds was made in the 2021 and 2022 federal budgets to implement the RM8.3 billion waiver.

The prime minister at a ceramah in Tanjong Karang in last night responded to news of Muhyiddin’s letter by saying he would release proof today that he had signed the debt waiver scheme for Felda settlers.

The Finance Ministry, in a separate statement on the release of the documents, said the agreement was the government’s guarantee of a total of RM9.9 billion to Felda to restructure its debts through the issuance of sukuk and revolving credit.

“Under the agreement, the government will guarantee the payment of sukuk through the allocation of RM990 million each year for 10 years,” the Finance Ministry said.

It added that the first payment of RM990 million was implemented on July 18 using funds accounted for under Budget 2023. – The Vibes, July 20, 2023