Felda chief backs staff who expose wrongdoings within Malaysia's land development agency

KUALA LUMPUR - Felda employees, including the top management, have been warned that there are whistleblowers within the organisation who will expose wrongdoing, said Felda chairman Shahrir Abdul Samad.

Citing the raid on Monday (July 17) on Felda Investment Corporation Sdn Bhd (FIC), the Felda chairman said the action by the Malaysian Anti-Corruption Commission (MACC) was due to informants, reported The Star newspaper.

"I welcome the probe by the MACC into FIC. On our part, we will cooperate fully with graft-busters and will not interfere in their high-gear investigation.

"This is a good development. Let me also assure that those who come forward to expose corrupt practices within Felda will be given protection," he said during the Felda Global Ventures Holdings Bhd (FGV) Hari Raya open house on Monday (July 17).

He was asked to comment on the MACC raid on Balai Felda over the purchase of a four-star hotel in Kensington, London, by Felda Investment Corporation (FIC), the investment arm of Felda.

Two witnesses have arrived Tuesday (July 18) morning at the MACC headquarters to have their statement taken to assist investigations into the deal.

One of them was FIC director Datuk Nik Azman Mohamed Zain, according to New Straits Times.

MACC chief commissioner Datuk Dzulkifli Ahmad has ordered a thorough probe to uncover any possible element of corruption or abuse of power in the process of acquiring the property.

Felda, the land development agency that has given land and subsidies to more than 100,000 Malay families since 1956, injected its palm oil business into Felda Global Ventures' (FGV) 2012 listing, but the latter has been plagued by scandals over deals worth several billion ringgit.

An investigation on the group president and CEO of the Felda Global Ventures Holdings Bhd (FGV), Datuk Zakaria Arshad, is expected to be completed by Aug 14, said the group's newly appointed acting chairman Tan Sri Sulaiman Mahbob on Monday (July 14).

A government audit last year found Felda invested in dubious projects under the leadership of former Felda chairman Tan Sri Mohd Isa Samad, which collectively lost more than RM100 million.

When Tan Sri Shahrir took over in January 2017, he immediately sacked the entire board of FIC.

Tan Sri Shahrir stressed on Monday that Felda was committed to weeding out corruption and abuse of power from top to bottom.

He urged all parties to support and allow the MACC to conduct a thorough investigation.

"No one yet has contacted me after my announcement earlier that there appears to be anomalies in FIC. Subsequently, I ordered the board of directors in FIC to tender their resignation in relation to certain loss-making acquisitions," he said, adding that some of the projects which resulted in losses include investments in Barakah Offshore Petroleum Bhd, Encorp Bhd and a sturgeon project.

Felda will be organising a three-day carnival from July 21 to mark the national Settlers' Day which falls on July 7. Mr Shahrir said the celebrations would serve as a platform to instil the love for Felda among its second-generation settlers.

He said the event would be filled with various information on Felda including the involvement of non-Malay settlers in the land scheme which many were still unaware of, according to Bernama news agency.

Felda settlers have for six decades returned the ruling Barisan Nasional (BN) coalition to power in almost all of the 54 parliamentary wards - nearly a quarter of the entire legislature - where Felda is present.

Analysts have said the farming votes are an important vote bank for BN to secure its 60 year grip on power in an election that may come within months.

Join ST's Telegram channel and get the latest breaking news delivered to you.