Wee questions govt on measures taken to help Felda settlers with debts
26 Mar 2019 (The Star Online) KUALA LUMPUR: MCA president Datuk Seri Dr Wee Ka Siong (BN-Ayer Hitam) questioned the government on measures taken to help Federal Land Authority (Felda) settlers settle their outstanding debts due to the fluctuating price of Felda Global Ventures (FGV) Holdings Bhd shares.
"I would like to ask what are the specific measures taken by the Economic Affairs Ministry to ensure that there will be a bright future for Felda and FGV settlers, since FGV is too dependent on the price of palm oil.
"What are the efforts taken to help settlers settle their outstanding debts and other promises made by the new government to help them?" he asked during Question Time.
In response, Deputy Economic Affairs Minister senator Dr Radzi Jidin said FGV is in the midst of a restructuring and transformation plan.
"The transformation and restructuring plan is to ensure that FGV's financial standing will be strengthened in the future," he said.
"Since the middle of 2018, FGV has undergone its recovery plan to turn around FGV through three major phases; the reshuffling of its board members and top management, an operational transformational plan and the rationalisation of non-core businesses.
"The new board members and management are professionals and business experts with high corporate governance experience in the agriculture sector," he said.
"In order to restore confidence, the board members have approved the FGV transformation plan in Oct 2018," he added.
He said that the government was also in the midst of looking at the Felda issue in totality to find measures to address challenges faced by it.
"The explanation of the issues and how to solve the challenges will be stated during the tabling of the White Paper, which is expected to be tabled during this parliament sitting," said Dr Radzi.
Felda is currently saddled with a huge debt of RM8.05bil, with an “almost empty” cash-flow position.
The mismanagement and mounting debts in Felda have been a major cause for concern for the new Pakatan Harapan government since its victory in May 2018.
Felda is the country’s most important political cog with 54 parliamentary constituencies dominated by Felda settlers.
The proposed White Paper on Felda will focus on the strategic rehabilitation plans for the government agency, among other areas.