The National Felda Settlers Association (Anak) today filed a police report accusing the Federal Land Development Authority (Felda) of embezzling funds intended for replanting oil palm.

According to Anak, 25,000 settlers are affected.

palm oil palm kelapa sawit 201107 The police report was lodged at the central police station in Johor Bahru at 12:30pm. The report was filed by Anak president Mazlan Haliman and two Felda settlers from Pengeli Timur in Kulai.

Mazlan claimed that Felda owed every settler RM17,000 for replanting oil palm.

He added that there are more than 110,000 Felda settlers in Malaysia, 25,000 of whom plant oil palm on their own and are entitled to Felda replanting funds.

According to Mazlan, the unpaid replanting funds have been a point of contention between Felda and the settlers since 1985. Even though the settlers have been involved in court cases with Felda, the issue has not been resolved.

'Politically motivated'

A Felda official who wished to remain anonymous said that the police report was politically motivated.

"The one who is championing the issue is a person who lost in the previous election," he said, referring to Mazlan, a PAS leader who contested in the 2008 general election.

However, the official said Felda would study closely the allegations made by Anak.

Felda was created in 1956 to resettle the rural poor into newly developed areas and help them to grow cash crops such as oil palm.

According to the Malaysian Palm Oil Board replanting needs to take place every 25-26 years to maintain the maximum yield from plantations.