'I smelled rat' - BN MP flings rodent at Najib's Eagle High deal
PARLIAMENT | Tajuddin Abdul Rahman (BN-Pasir Salak), one of the fiercest critics of the government on the opposition bench, offered no defence when Economic Affairs Minister Mohamed Azmin Ali sank his talons into former premier Najib Abdul Razak today for putting US$505.4 million (RM2.07 billion) of Felda funds at risk in the Eagle High deal.
On the contrary, Tajuddin claimed that he, too, was suspicious when the deal was inked...
PARLIAMENT | Tajuddin Abdul Rahman (BN-Pasir Salak), one of the fiercest critics of the government on the opposition bench, offered no defence when Economic Affairs Minister Mohamed Azmin Ali sank his talons into former premier Najib Abdul Razak today for putting US$505.4 million (RM2.07 billion) of Felda funds at risk in the Eagle High deal.
On the contrary, Tajuddin claimed that he, too, was suspicious when the deal was inked.
"With regard to Eagle High, I had raised that we must be cautious at the time.
"Personally, I smelled (a) rat. I smelled (a) rat. I was against it,” he told the Dewan Rakyat, much to the surprise of those on the government bench.
Tajuddin said he was suspicious of Indonesia's Eagle High Plantations' books and called for an investigation.
"Many of its lands are actually empty and have no plantations," he added.
Tajuddin indicated that although he had expressed concern over the matter, he was unable to fight the prime minister at the time.
"Don't accuse us of being silent. We did speak up but...," he trailed off and shrugged.
"It is the same, like Langkawi (Prime Minister Dr Mahathir Mohamad). You can talk, but in the end, the decision is made by Langkawi.
"You should get what I mean," he added.
Azmin: Dr M and Najib like 'heaven and earth'
Azmin ticked off Tajuddin nonetheless, stating he should not compare Najib to Mahathir.
He described the difference between the two as "heaven and earth."
"I'm not comparing, what I mean is the system..." Tajuddin replied. "In a group, the leader decides."
Najib was absent from the Dewan Rakyat due to a court case he had to attend at the Kuala Lumpur High Court.
Azmin was delivering his winding-up speech after the tabling of a White Paper on Felda in the Dewan Rakyat.
Felda had paid US$505.4 million to Rajawali Capital International to buy a 37 percent stake in Eagle High Plantations, even though it was only worth US$115.2 million) (RM473 million) in the open market when the decision was made in December 2015.
Najib had defended the deal, stating that the 'put option' meant that Felda could regain the full investment on top of a return of six percent per annum, regardless of the share price.
However, Azmin pointed out that Felda had exercised the put option, but was facing a hard time regaining the US$505.4 million, as Rajawali is now fighting the move.
Furthermore, the minister said Rajawali might not have the capability to repay the sum since it only had net tangible assets of US$7.2 million (RM29.6 million) in 2014.
"If the net tangible assets of Rajawali in 2014 are only US$7.2 million, how is it going to repurchase Eagle High from Felda for US$505.4 million?" he asked.
Rajawali is linked to Indonesian tycoon Peter Sondakh, said to be a close associate of Najib.
No credit risk evaluation
According to the Felda White Paper tabled in the Dewan Rakyat today, the put option allows the agency to redeem its full investment plus the six percent per annum returns in the fifth year.
The deal was signed less than three years ago, on Dec 26, 2016.
According to the White Paper, however, Felda can still trigger an early put option if Eagle High fails to comply with its obligations in the Roundtable on Sustainable Oil Palm (RSPO) requirements, fails to get its RSPO within two years, commits a material breach, or is involved in judicial proceedings relating to liquidation, insolvency, composition or reorganisation.
To date, Eagle High has yet to secure its RSPO certification.
The White Paper also criticised Felda for not conducting a credit risk evaluation on Rajawali, referred to as 'Company A1', to ensure that it would be able to repay the sum if the put option is exercised.
"There is no evidence to show the management and Felda board conducted due diligence or credit evaluation for 2016 on Company A1 to ensure that Company A1 is capable of returning the value of the investment through the 'put option'," it read.
Yesterday, Najib shared parts of the Felda White Paper before it was tabled in the Dewan Rakyat, highlighting acknowledgement of the put option.
"With the 'put option', if we do not wish to proceed with the investment, we can reclaim all our money including interest of six percent per annum," he said.
"It does not matter how much the share price is worth, because our profit is guaranteed.
"Therefore, the rakyat's money is safeguarded and we will not suffer losses – this also proves that Harapan's claim that Felda suffered loses from buying into Eagle High is slander."
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