Discrepancies have been raised as to the circumstances which led the Federal Land Consolidation and Rehabilitation Authority (Felcra Berhad) made a RM150 million unit trust investment.

Documents sighted by Malaysiakini appear to indicate that Felcra chairperson Bung Mokhtar Radin might have told the board of directors one thing, but informed the Finance Ministry something else when seeking approval for the investment.

The minutes of Felcra’s board meeting on Nov 24, 2014 showed that RM300 million of new investments were to be made.

Of this amount, RM50 million was for unit trust, while the remaining RM200 million was for cash management, and another RM50 million for fixed deposits.

The meeting concluded that there was a risk of losing investments if unit trust share prices fell, and that "the management must get approval from Finance Minister Inc (MKD)" prior to making such investments.

In a subsequent letter seeking approval from Second Finance Minister Husni Hanadzlah however, it appeared that Bung could have changed the amount of Felcra’s investment in unit trust.

In the letter, the Kinabatangan MP told the Finance Ministry that Felcra had agreed to invest RM150 million in unit trust instead of the RM50 million approved by the board.

He cited an attached copy of the Nov 24 minutes to state that Felcra had given the green light to the investments.

It is unclear if Bung had attached the same Nov 24 minutes sighted by Malaysiakini or if there was a different document with altered figures.

On April 23, 2015, the Finance Ministry gave Felcra the clearance to invest RM150 million in unit trust on condition that it be constantly monitored to mitigate risks if there is a sharp decline in equity prices.

A source told Malaysiakini that the unit trust investment, which was made on May 18, 2015, had since depreciated by RM15 million.

When contacted, Bung declined to comment on the matter.

"I feel there is no need to respond to this, this is the work of traitors (in Felcra)," he told Malaysiakini.

Malaysiakini has also contacted Felcra and is awaiting its response.

A government-owned conglomerate, Felcra’s objective is to develop the rural sector and is involved in construction, engineering, real estate development as well as trade.