KUALA LUMPUR: FGV Holdings Bhd (FGV) is awaiting for Federal Land Development Authority (Felda) to contact it regarding the land lease agreement (LLA) which was signed on Nov 1,2011.
In a statement issued on Tuesday, FGV said it was prepared to follow the procedures outlined in the LLA, once it receives a notice from Felda regarding this matter.
In the statement, which followed a media statement on Oct 20, FGV said the LLA specifies that the assets involved are estates that do not include land cultivated by existing Felda settlers, and do not include FGV’s palm oil mills.
Currently, the size of Felda land amounts to more than 850,000 hectares, and the land owned by Felda settlers amounts to 450,632 hectares.
Felda-owned land that was leased to FGV is 350,733 hectares.
As at Aug 28 this year, Felda’s shareholdings is 21.24% and Felda Asset Holdings Company Sdn Bhd’s (FAHC) shareholdings is 12.42%. Subsequently, a Felda representative was placed on the board of directors of FGV.
Koperasi Permodalan Felda Malaysia Bhd’s (KPF) shareholdings is 4.751%.
To recap, on June 29,2018, the company’s name was changed to FGV Holdings Bhd with the approval of all shareholders.
FGV provides services, technical support and planting materials for its estates, settlers, and smallholders. Felda settlers on the other hand supply fresh fruit bunches (FFB) to FGV’s palm oil mills.
“The LLA states that the amount payable to Felda is RM248mil (based on the hectarage) plus 15% of the operating profit from LLA land yearly.
“Beginning from 2016, there was a decrease in the LLA fixed payment to Felda due to adjustments in hectarage leased.
“This decrease was due to several reasons including land acquisition by Felda, surrender of land to Felda for the purpose of mining, encroachment to third party land, overlapping of mill land as well as the reconciliation process between land title and the Department of Survey and Mapping Malaysia (JUPEM), ” FGV said.
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