The Federal Land Development Authority (Felda) is alleged to have committed fraud by underpaying Felda settlers from Rancangan Serting and Gugusan Raja Alias in Negeri Sembilan a total of RM200 million over the past 15 years.     

NONE The 766 settlers involved have filed a suit over fraud and breach of trust today to claim the monies at the Seremban High Court, and have named Felda and Felda Palm Industries Sdn Bhd as the first and second defendant respectively. 

According to a statement by the plaintiff’s counsel R Sivarasa, the settlers are bound by contract to Felda to deliver their oil palm fruits exclusively to Felda Palm Industries. 

For the past 15 years, the settlers were paid based on an oil extraction grade which averaged at 18.9 percent, which is lower than the Malaysian Palm Oil Board’s recommended 22 percent.

NONE “In March and July this year, the settlers through their representatives sent random samples of their fruit yields to two different independent laboratories to assess the actual rate of the oil extraction grade. 

“The results from the two lab tests showed a much higher rate of 24 and 25.5 percent. This would mean a difference of 6 to 6.5 percent over the rate used by Felda Palm Industries,” said Sivarasa. 

‘Exploited’ by Felda

NONE Sivarasa ( right in photo ) said his clients will obtain the exact production figure of the Felda settlement schemes involved through the court process to compute the settlers’ exact losses during the period.

“The settlers are also claiming exemplary damages as they contend that Felda, as the statutory authority set up by law to look after the welfare of the settlers, has instead exploited its position of power and authority over the settlers,” he said.

A similar case was decided by the Federal Court in January, which upheld the lower court's decision in favour of the Kemachang 3, Kelantan settlers who filed a suit against Felda for cheating. 

A total of RM11 million was awarded to the Kemachang 3 settlers.         

Felda had long been subject to claims of government abuse and mismanagement , with the latest allegations surfacing last month following the revelation that its cash reserves had plunged from RM4.08 billion in 2004 to RM1.35 billion in 2009.