KUALA LUMPUR, Nov 4 — The successes of Putrajaya’s federal land development authority (Felda) is proof enough that Umno has not failed the Malays, Tan Sri Isa Samad said today.

The Felda chairman said the opposition has often used the allegation to paint the ruling Malay party as having failed the country’s ethnic majority but this has been proven wrong with Felda’s achievements as a predominantly Malay enterprise.

“The allegation is baseless... this is the allegation they often use in the elections. The successes of Felda is sufficient to prove the achievements of the Malays,” Isa, who is also Jempol MP, said in his speech at a Felda event held in the body’s new office here.

He further claimed that as long as he was chairman of the plantation conglomerate, “there will never be any problems with Felda”.

Isa alleged if ever Felda was seen to be in trouble, it was only the work of “outsiders”, in an apparent reference to ANAK, an opposition-backed NGO that has been fighting against what it claimed as Putrajaya’s exploitation of settlers.

Isa then called them “pests” who “won’t die and if they did die, a new one will replace them”.

Speaking at a press conference later, Isa said the group has tried to sway settlers into voting for the opposition by disseminating “lies”.

“They tell settlers all these lies. An example is they tell them that we want to take their land. This is not true,” he said.

Felda has been mired in several controversies since Datuk Seri Najib Razak took office in 2009, the most notable being the Felda Global Venture Berhad’s (FGV) proposed buyout of the remaining 51 per cent stake in the world’s largest palm oil producer, Felda Holdings Bhd (FHB), which critics say is detrimental to its owners, a Malaysian farmers’ cooperative.

Financial analysts have provided an optimistic forecast that the RM2.2 billion deal would work in FGVH’s favour but critics said Koperasi Permodalan Felda, (KPF), which represents some 113,000 settlers, would lose its cash cow and face an uncertain future.

FHB is currently the world’s largest producer of crude palm oil (CPO) based on production volume, with 3.3 million tonnes produced in 2012. KPF holds 51 per cent controlling stake in the company while FGVH holds the remaining 49 per cent.

ANAK president Mazlan Aliman has criticised the move, claiming it could put settlers’ future in doubt.

Just recently Felda was again put under the spotlight after it purchased a RM495 million 180-unit serviced apartment in Bayswater, London.

Penang’s DAP Chief Minister Lim Guan Eng claimed the property was bought at RM100 million more than its market value. He also raised concerns over the profitability of the investment, as Felda, with its core business in commodity plantation, has neither prior expertise nor intimate knowledge in the business of running hotels.

Isa has dismissed the accusation and said Felda’s ownership of eight hotels has given them enough expertise to make the London investment.

In Parliament on Monday, Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim insisted that Felda’s RM500 million investment would bring yield, although he could not provide an estimated figure.

“The cost to buy the hotel or serviced apartments was £98 million (RM500 million) but valuation on paper is £115 million and according to our research, that place can bring in profit because it has an occupancy rate of 90 per cent every month.

“The investment is an opportunity for the subsidiary company, but I can’t answer if the investment can bring profit or if the capex will be enough,” the Muar MP said.

Residential Land sold the freehold of Grand Plaza Serviced Apartments for £98 million to FIC UK Properties, a subsidiary of Felda Investment Corporation (FIC) Sdn Bhd in early September 2013.

The serviced apartment is one of the largest in London, has 198 apartments across 13 period stucco-fronted buildings over 105,044 square feet, and is located near the Bayswater Underground station.

Razali said that it is important to not “put everything in one basket”, in justifying the Felda’s move to invest in non-agricultural sectors. Felda now owns nine hotels in total.

Citing his experience when Pakatan Rakyat (PR) took on administration of the Penang government after the 2008 polls, Lim noted today that the pact had been shocked to discover that the state government and its many subsidiaries had been involved in non-core activities in which it had zero expertise like operating oil palms, rubber plantations, rearing fish farms, running hotels, educational colleges and even a golf course.

All these “ill-considered ventures”, he said, were chalking up major losses.

But through a policy of divestment and outsourcing through open, competitive tenders, Lim said these heavy annual operating losses were later turned into yearly profits instead.