The construction of new Federal Land Development Authority (Felda) headquarters is on schedule, said Deputy Minister in the Prime Minister's Department Ahmad Maslan today.

He said that RM300 million has been paid to the contractors so far, he told reporters at the Parliament lobby.

NONE The new Felda headquarters, reportedly costing RM662 million, has courted c ontroversy after former deputy minister Tan Kee Kwong ( right ) revealed that there was a far cheaper proposal made in 2006.

Tan also questioned why the need to buy an expensive plot of land along the glitzy portion of Jalan Tun Razak, near KLCC, for the new headquarters.

He argued that it would have been more cost effective for Felda to utilise the many parcels of land it already owns along Jalan Semarak, which was nearby.

He said that the costly new headquarters were examples of mismanagement in Felda, which drew scrutiny after it was revealed in Parliament that its cash reserves had dropped drastically since 2004.

‘Should we just keep money in the bank?'

Meanwhile, Ahmad also criticised PAS party organ Harakah for its titled 'Felda reserves had plummeted'.

ahmad maslan Ahmad ( left ) argued that the report failed to take into account that money was invested for Felda's benefit and this was proven in the sharp appreciation in the agency's assets value.

"Although Felda's reserves had reduced by RM 2.73 billion, most importantly its assets value had increased by RM 6.73 billion.

"Why should Felda just keep this money in the bank? We have spent it for the development of the people," he said.

Felda is the world's largest land development operation in the world which aims to eradicate poverty by granting bumiputeras access to smallholder farm ownership.

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