JOHOR BAHARU, April 2 (Bernama) -- Thirteen plantations, in the state,owned by the Federal Land Development Authority (Felda) scheme operatorswere sold to other parties including financial institutions.

The state government also identified 326 plantations that were mortgagedwith financial agencies and 134 mortgaged among settlers.

"Investigations showed that each hectare was mortgaged between RM10,000and RM120,000," state Agriculture and Rural Development committee chairmanOthman Jais said.

"All the plantations sold had grants and were settlers' property," he tolda press conference after attending the state executive council meetinghere Wednesday.

At present, in Johor there are 27,280 Felda settlers in 72 plantations andeach were given 3.2 to 4 hectare land to be developed.

Othman said from the total, 15, 494 settlers involving 35 plantations hadreceived their grants while the balance would get their land title by2011.

Land were mortgaged because settlers needed money for medical treatment,palm oil replanting and to venture into business -- but they breached thegovernment's conditions, Othman said.

"Felda land cannot be sold, mortgaged or leased. If settlers want to selltheir land they must obtain the state government's permission," he saidadding the state could confiscate their land if they violate theconditions.

To curb the problem, the state urged the Land and Cooperative DevelopmentMinistry to review the existing regulations governing Felda schemes.

"If possible we will ask Felda to establish a fund to redeem the mortgagedland."

Othman said effective June, the ministry would increase Felda settlerspension from RM200 to RM500, for those involved in palm oil replanting,besides offering RM2 per tonne to operators who sell their harvest toFelda-owned mills.

Felda has also established an entrepreneur fund that offers an interestfree loan of RM10,000 to help settlers start their own business. --BERNAMA