WHAT was once seen as a ticket out of poverty for rural folks is becoming like a nightmare that never ends; at least that's the story of the once great Federal Land Development Authority (Felda).
Most would credit its establishment to second prime minister Tun Abdul Razak Hussein with the aim of eradicating poverty among the mostly Malay settlers.
Given this objective, the 63-year old Felda has been seen as one of the country’s most important political cog, with some 54 parliamentary seats dominated by Felda.
For the most part, Felda was successful. At one point it was even known internationally as an exemplary model in alleviating rural poverty and many had sought Malaysia’s experts to implement the model in their respective countries. However, nothing lasts forever, for the once great and cash rich.
Felda is now burdened with a ballooning debt of RM8.05 billion and an almost empty cash-flow position, due to years of mismanagement and abuse.
Some would say trouble first brewed when Felda was privatised and at the public listing of its subsidiary Felda Global Ventures, which was then rebranded to FGV Holdings Bhd in 2012.
Ironically, the move to list FGV was during the administration of former prime minister Datuk Seri Najib Razak, Tun Razak’s eldest son.
The appointment of former Negri Sembilan menteri besar and Umno strongman Tan Sri Isa Samad as its chairman was deeply criticised, as it was believed it was Najib’s doing.
At that point, the criticism was mostly on the fact that Felda needed a corporate whizz during this transition and not a politician to helm it. The criticisms, however, are not for naught as Isa has, at last count, been charged with one count of criminal breach of trust (CBT) and nine counts of graft involving more than RM3 million, during his tenure.
Among the charges was that Isa had allegedly committed CBT by approving the purchase of Merdeka Palace & Suites Hotel without approval from Felda’s board of directors.
As this unravels under the change of government from Barisan Nasional to Pakatan Harapan (PH), it appears that corruption had trickled from top to bottom. In fact, the PH government had teased of the many discrepancies that would shock in a White Paper scheduled to have been tabled in Parliament last December, but it was unfortunately postponed.
Economic Affairs Minister Datuk Seri Azmin Ali said the postponement was done on the advice of the Attorney-General’s Chambers in view of certain legal issues that needed to be resolved.
The much-anticipated White Paper, will, among others, focus on strategic rehabilitation plans with 31 initiatives as part of a transformation scheme, along with a turnaround plan that includes the sale of properties. The White Paper is expected to be made public during next month’s sitting of the Dewan Rakyat.
Can Felda bring back its former glory?
Perhaps a move to delist FGV, and return it to specifically for the wellbeing of the settlers, should be on the table.
Felda was created as an organisation for the small settlers; a few wayward steps had turned it into a cash machine for the so-called elite.
In going back to basics, Felda will have come full circle as it addresses the needs of the settlers and the forgotten vision of Tun Razak.