Federal Land Development Authority (Felda) settlers, embroiled in disputes with the agency, should resolve them before an arbitration committee and not take legal action.

Deputy Minister in the Prime Minister's Department Ahmad Mazlan, who heads the committee, said it (committee) was entrusted with solving disputes between Felda and settlers.

"Under the Group Settlement Act, settlers cannot sue Felda and disputes must be taken to the committee," he said after attending a state-level Felda Settlers Day celebration in Sungai Tengi, Hulu Selangor, today.

He said the committee would arrive at a win-win solution, based on facts of the case and advice from Felda's highest management.

They could have more

Ahmad said, taking disputes to court was a bad move as in the case of Kelantan's Kemahang 1 and 2 settlers who received only between RM9,000 and RM11,500, despite winning their case.

NONE Earlier, the settlers had each sued Felda for between RM20,000 and RM30,000 after claiming the agency had undermined the quality of oil palm fruits at the two schemes from 1996 to 2002.

"Had they used the arbitration committee, Felda would have paid them between RM17,000 and RM23,000," said Ahmad.

Rebutting a claim that Felda did not pay full compensation to settlers in general, the deputy minister said the agency had given full compensation in the past.

However, the settlers had spent the money and failed to replant, he said, adding that Felda decided to pay the compensation in stages.

- Bernama