BANGI: Datuk Seri Anwar Ibrahim has written to Indonesian President Prabowo Subianto to seek his help on a Felda investment in PT Eagle High Plantations Tbk (EHP), which may run into billions of ringgit in losses.
The Prime Minister said the move was prompted by potential financial losses of up to RM2.5bil stemming from decisions made by the previous Felda management, with expected returns now likely to be only around RM200mil.
“This investment is subject to court proceedings in Indonesia. I have written to President Prabowo asking him to look into the matter.
“If it is not addressed, we could potentially lose RM2.5bil and recover only RM200mil.
“This situation is an example of mismanagement,” Anwar said during a meet-and-greet session with Felda’s senior management and managers at a hotel here yesterday.
In December 2016, Felda (via FIC Properties Sdn Bhd) bought a stake in Indonesia’s EHP for US$505.4mil. The purchase price was widely criticised as heavily overvalued compared to market value and subsequent stocks.
Anwar said the disclosure of the financial crisis figures was intended to ensure Felda’s management at all levels understood the scale of the challenges it faces in its recovery efforts.
“I want the managers to understand how difficult the recovery will be. This is not a problem caused by the managers.
“What does a Felda manager in Pahang or Johor have to do with it? Yet, we are the ones who have to bear the consequences ... that is the problem.
“Issues involving investigations, enforcement and the courts are separate matters.
“What I want to emphasise is that all Felda managers must fully understand the issues. They should not become discouraged but recognise that these problems must be tackled,” he said.
On broader recovery efforts, Anwar gave assurance that the government is committed to accelerating basic welfare projects rather than waiting until next year’s budget.
The Prime Minister also stressed that the emphasis on governance, integrity and accountability is not intended to find fault with any particular party but to safeguard public trust and ensure Felda regains its standing as an institution the country can be proud of.
