Malaysia’s Federal Land Development Authority (FELDA) insisted that it did not suffer a large loss of RM6 billion as revealed by the media, reported Bernama.
“No money was lost. From the RM6 billion received when Felda Global Ventures Holdings Bhd was listed, we spent RM1.7 billion for Felda settlers to pay each family RM15,000,” said its Chairman Tan Sri Shahrir Abdul Samad on Sunday (12 February).
“The balance of RM4.3 billion was used for various reasons. Felda made one-off payments to the governments of Sabah (RM300 million), Pahang RM250 million, housing loan for Felda settlers RM400 million, management expenses RM883 million plus investments in property, both here and foreign countries, to buy shares and many others.”
Shahrir was responding to reports posted in several news websites alleging that the whereabouts of the RM6 billion obtained by FELDA after FGVH’s initial public offering (IPO) could not be traced.
He stated that RM1.438 billion was invested in several real estate, namely RM86 million in Grand Borneo Hotel in Sabah, RM225 million in Institut Penilaian Negara’s building, RM304 million in Malacca’s Bukit Katil and RM500 million in London’s Grand Plaza Service Apartment. RM110 million was also used to buy shares of Iris Corporation Berhad.
“My job is to ensure money invested by Felda is according to plans and to make sure the investments give good returns,” noted Shahrir, adding that the RM1.438 billion was invested in properties related to the hospitality industry to provide FELDA with recurring long-term income.
FELDA had also bought Felda Technoplant Sdn Bhd for RM38 million. However, the total accumulated losses of the agency involving the Transnovasi Project reached RM108 million.
Shahrir, who took the helm of FELDA from Tan Sri Isa Samad, also added they are planning to dispose a hotel in London that was purchased for RM548 million in 2012, and the sale would soon be finalised.
Image sourced from Free Malaysia Today
Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my
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