PETALING JAYA: The police have been told to investigate Felda “without fear or favour” over its luxurious projects and over-the-top contracts.
Home Minister Tan Sri Muhyiddin Yassin (pic) said he has directed the police to investigate the reports professionally.
Many of these contracts were the source of Felda’s financial problems, he said.
“The government is considering Felda’s request for a capital injection of RM6bil for the sake of the more than 120,000 settlers,” he said.
A White Paper, which was tabled at the Dewan Rakyat on Wednesday, pointed out the various shady transactions that took place in the statutory body.
Muhyiddin noted in a statement yesterday that Felda had to seek the government’s help to keep it afloat.
In understanding Felda’s problems, the government engaged accounting firm Messrs EY to conduct a forensic audit, he added.
“Felda also consulted legal firm Messrs Lee Hishammuddin Allen & Gledhill.
“The findings by the two consultants confirmed that Felda had been a victim of fraud and corporate breaches.
“Consistent with the forensic audit, Felda director-general Datuk Dr Othman Omar has lodged two police reports on Eagle High Plantation Investment (EHP) and the KLVertical City project which showed criminal misconducts resulting in Felda suffering billions of ringgit in losses,” he said.
Muhyiddin, who is Parti Pribumi Bersatu Malaysia president, also accused Datuk Seri Najib Razak of issuing statements that were calculated to confuse the public, especially the Malays and Felda settlers.
“He said the EHP was a strategic investment – good for Felda and the country. It is certainly not strategic to buy at over 300% more than the actual price.
“What Felda bought for RM2.5bil is now worth only RM500mil. Felda is bleeding by RM2bil,” he said.
The government, he said, was committed to expose and hold the culprits, who caused the losses to Felda, accountable and face the consequences.
Did you find this article insightful?