KUALA LUMPUR, March 7 — The Federal Land Development Authority (Felda) will continue to improve operational efficiency and transparent governance and optimise productivity efficiency so that the agency will remain relevant.
Referring to the Auditor General’s Report (LKAN) on the financial statements of federal agencies for 2022 tabled in the Dewan Rakyat yesterday (March 6) which showed that the agency suffered a net loss of RM1.005 billion, Felda stressed that the loss did not refer to misuse, corrupt practices and weaknesses in management governance.
Felda, in a statement today, said that the loss was due to the impact of derecognition and remeasurement of settler loans with a value of RM339.01 million to alleviate their burden.
Other contributing factors are Felda as the corporate guarantor for the loan to purchase PT Eagle High Plantations made through FIC Properties Sdn Bhd amounting to RM379.85 million as well as loan impairments to its subsidiaries such as FIC Group and Dataran Aras Sdn Bhd, amounting to RM192.66 million.
It added that the Felda Group (consolidated account) has recorded a profit before tax of RM449 million as well as an operating profit of RM19.56 million in 2022.
Yesterday, LKAN recommended that Felda establish a clear direction for operating with strong financial performance without high dependence on federal government assistance and financial support.
The report also suggested that Felda increase monitoring of subsidiary companies’ operations and financial performance more closely to ensure their sustainability, continued progress without reliance on the parent agency and good returns to Felda. — Bernama
