PETALING JAYA: The Federal Land Development Authority (Felda) had losses of RM1bil, the 2022 Auditor-General's Report revealed.
The AG report on the Federal Agencies Financial Statement for 2022 said that Felda faced a net loss of RM1.005bil.
It also faced a net loss of RM0.545bil in 2021.
“The outstanding loans from external institutions for Felda amounted to RM8.659bil in 2022 (2021: RM8.809bil),” said the report.
The report also revealed that Felda received grants amounting to RM0.214bil in 2022 and RM0.342bil in 2021.
“The reduction in grants received by Felda impacts operational sustainability as it heavily relies on financial aid from the Federal Government,” it said.
The report also mentioned Felda’s commitments to loan repayment whereby loans at the Felda Group level include an Islamic Financing Facility agreement signed by Felda's subsidiary company, FIC Properties (FICP), with Govco Holdings Berhad (GovCo), a company under the Finance Ministry (Incorporated), amounting to RM2.500bil.
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“FICP's failure to repay the loan led Felda to enter into a new agreement with GovCo as a corporate guarantee for the Islamic Financing Facility,” the report added.
The report said Felda’s cash and cash equivalent position amounted to RM0.808bil in 2022. However, Felda had significant commitments totalling RM1.561bil.
According to the report, based on the existing cash and cash equivalent balance, Felda is unable to meet commitments amounting to RM0.753bil.
The audit report recommended that Felda establish a clear direction for operating with strong financial performance without high dependence on federal government assistance and financial support.
It also advised Felda to monitor the operations and financial performance of subsidiary companies more closely to ensure their sustainability, continued progress without reliance on the parent agency and good returns to Felda.
The AG report on the Federal Agencies Financial Statement for 2022 is accessible at the National Audit Department's website at https://lkan.audit.gov.my after it was presented in the Dewan Rakyat on Wednesday (March 6).
