Felda settlers’ debt waiver: Muhyiddin’s ex-aide insists released docs not actual agreement

KUALA LUMPUR – A former aide to Tan Sri Muhyiddin Yassin has insisted that the documents released today by the Datuk Seri Anwar Ibrahim administration are not the actual agreements on the debt waiver for Felda settlers. 

Marzuki Mohamad, who was Muhyiddin’s private secretary when the latter was prime minister in 2020, said the documents released merely showed the agreement on issuing sukuk as the government’s guarantee to waive the debts. 

Marzuki insisted that Muhyiddin’s role in waiving the debts was in a plan to restructure Felda which the cabinet approved on October 14, 2020. 

This plan included the waiver of 80% of the debts worth RM8.3 billion as well as a plan to issue RM9.9 billion in sukuk in stages to restructure Felda and resolve the debts with Maybank and the Employees Provident Fund. The plan also included an annual grant of RM990 million to Felda from the federal government. 

“To clear any doubt that the cabinet on October 14, 2020, made this decision to waive the Felda settlers’ debts, it is best the government ‘declassify’ the minutes of that cabinet meeting for the public,” Marzuki said in a statement, which PAS has circulated on its social media platforms. 

“The documents released by the prime minister (today) do not prove that the waiver of the debts was only made in June 2023. They are only about the issuance of sukuk that is guaranteed by the government, which was decided upon by the cabinet in 2020,” Marzuki added. 

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

It also released the payment order of RM990 million as sukuk to Felda on July 18. 

PMO released the documents following a dispute between Muhyiddin and Anwar over which government implemented the write-off of the RM8.3 billion debts. 

Muhyiddin, who is Perikatan Nasional (PN) chairman, had also sent Anwar a legal letter demanding a retraction and apology for insinuating that the former 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 Vibes, July 20, 2023