Muhyiddin tells Anwar to apologise, retract Felda debt claim

Former prime minister Muhyiddin Yassin has demanded that his successor Anwar Ibrahim prove that he has signed off on a RM8.3 billion waiver for Felda settler’s debts last month, after the latter claimed Muhyiddin failed to resolve the issue.

He also demanded that Anwar retract and publicly apologise for his claims.

These are some of several demands outlined by Muhyiddin’s (above, right) lawyers in a letter of demand dated July 18, which gave Anwar 24 hours to reveal the document after receiving the letter.

“Take note that if Dato’ Seri (Anwar) fails to meet the demands here within the period specified above, we have been directed to initiate legal action against Dato’ Sri, including but not limited to damage claims and injunctions without further notice to Dato’ Sri,” said the letter from the law firm, Rosli Dahlan Saravanan Partnership.

In his speech at the Felda Settlers Day reception in Serdang on July 7, Anwar claimed that an initiative to restructure and forgive Felda’s debts under Muhyiddin’s administration was promised but never materialised.

The Pagoh MP had dismissed Anwar’s claims as a lie, citing a parliamentary reply from Minister in the Prime Minister’s Department (Law and Institutional Reform) Azalina Othman Said on Feb 23 that the waiver was carried out in 2021, though the present government is unable to continue what he started due to cash flow problems.

Despite Muhyiddin’s denial, Anwar doubled down on his claim on the following day, saying that there was no allocation in the 2021 and 2022 federal budgets to waive the RM8.3 billion in debt.

“There was an agreement, but in the 2021 and 2022 budgets, there was no allocation to settle and waive Felda settlers’ debts. I stand by this record.

“Only in the Madani budget for 2023, I provided an early allocation of RM990 million to waive Felda settlers’ debts of RM8.3 billion,” he said, adding that he has signed off on the relevant document in late June.

On June 28, it was reported that Anwar has signed a government guarantee to restructure Felda’s loans through the issuance of sukuk and revolving credit.

The Finance Ministry said a major part of the restructuring of Felda’s loans is to reduce the principal of its debt to financial institutions by RM7.9 billion, which would, in turn, reduce Felda’s interest payments and enable it to cancel 80 percent of the RM8.3 billion settlers’ debt implemented in 2021.

Meanwhile, in the letter of demand, Muhyiddin’s lawyers said Anwar’s accusations are malicious slander against their client, which insinuates he is a liar who failed to fulfil promises and his responsibilities as prime minister.

“Our client states that the defamatory statements by Dato’ Seri that carry the above meaning were done recklessly and show Dato’ Seri’s ignorance as finance minister - who does not check the true facts and resulted in making false, deceptive and confusing statements,” the letter read.

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