KUALA LUMPUR: A key player in the Federal Land Development Authority (Felda) sturgeon- breeding project in Pahang has been identified among the five men remanded yesterday for investigations into alleged abuse of power and misappropriation of funds related to the project.
This as the Malay-sian Anti-Corruption Commission (MACC) unravelled how the system was circumvented and how the general manager of the project, a Datuk, allegedly abused his position in the RM146.25 million sturgeon farm deal.
The probe was initiated after the 2015 Auditor-General’s Report exposed Felda’s losses.
It led to the arrest of a former general manager, 57, former deputy director, 53, head of London properties, 38, a former operating officer, 30, who was in charge of the sturgeon project, and an assistant administrative officer, 30.
The Datuk was said to have been the key player in securing the
multimillion-ringgit project via a company called Felda Carviative
Sdn Bhd (FCSB) without getting approval from Felda’s board of directors.
“The board of directors needs to approve the creation of a new company and sign the deal, but the general manager, through abuse of power, was able to bypass this process,” a source told the New Straits Times.
“The general manager was the one who gave the ‘blessing’ to a deputy director to create another company (FCSB) and signed a deal with a South Korean company,” the source said.
The board of directors, the source said, had no clue about the project even after RM47 million had been paid to the South Korean company through its finance department.
The payment was allegedly made after the project was suspended for failing the Detailed Environment Impact Assessment in Pahang.
The source said the deputy director, using the agreement which he and the general manager had signed in 2014, had also convinced the agency’s finance department to release large sums of money without carrying out due diligence.
“Nothing has been done at the 50-acre (20ha) site, which was approved for the project, but the suspects claimed they had completed several tasks, such as the transfer of technology, and secured tanks to keep the sturgeon.
“Since there was an agreement between Felda and the South Korean company, which was signed by
the general manager, the accountant released the payment without
even checking if the project had been approved by the board of directors or if the tasks had actually been done.
“It is possible that nobody dared to ask questions because the project was supported by the general manager.”
Meanwhile, MACC deputy chief commissioner (operations) Datuk Azam Baki said the commission needed time to investigate the case further.
“The investigation began following the release of the A-G’s Report.
“We also believe that the criminal activity had been ongoing for quite some time.
“So, we need more time to look for information and evidence,” he said, adding that the A-G’s Report would be reviewed further and more statements would be gathered.
Azam also said Felda would cooperate fully in the probe.