Report: Eagle High buy under Najib's orders, says Felda D-G

KUALA LUMPUR, April 9 — The Federal Land Development Authority (Felda) was duped into buying a 37 per cent stake in Eagle High Plantations TBK (EHP) at higher-than-market prices during the Najib administration because of orders from the top, according to a news report ahead of the government’s White Paper on the state-own palm oil giant’s financial losses.

Citing from a police report filed yesterday by Felda director-general Datuk Othman Omar, business daily The Edge reported that the order to purchase EHP shares from Indonesian conglomerate the Rajawali Group came from Datuk Seri Najib Razak in a Finance Ministry letter dated December 8, 2015.

Najib was at that time both the prime minister and finance minister.

Othman claimed in his police report that the Rajawali Group chairman Peter Sondakh was a friend of Najib's.

Othman further claimed that the EHP shares were “forced” on Felda after attempts to get other Malaysian firms including its public-listed agri-company FGV Bhd and other agencies such as the Malaysian Plantation Oil Board and the Malaysian Rubber Board failed.

He labelled the purchase agreement a “one-sided” affair that benefited Rajawali, with Felda forking out over US$505 million (RM2.3 billion) for the 37 per cent stake when the market price was US$114 million.

According to the report, the price was inflated by more than 300 per cent.

Othman also alleged that Felda suffered RM1.576 billion losses as at December 31, 2017, because it was made to take a RM2.5 billion loan from GovCo Holdings Bhd, then a unit of the Finance Ministry during Najib’s tenure.

Othman was said to have filed his report with the police commercial crime unit yesterday.

The Pakatan Harapan government is expected to table a White Paper on Felda at the Dewan Rakyat tomorow.