PM’s move enables agency to restructure financial commitment – Felda

Felda today clarified that the assignment for Financial Service Reserve Account (FSRA) agreement was meant, among others, to enable the agency to restructure its financial commitment in relation to the interest rate charged and writing off 80 per ent of the settlers’ bad debt amounting to RM8.3 billion.

Felda, in a statement, said the commitment to write off the settlers' debts was implemented by the agency without any grant from the federal government in 2021 and 2022, hence giving a huge impact on Felda’s cash flow and performance.

“As a measure to assist and ensure Felda’s survival, Prime Minister Anwar Ibrahim had, on June 26, signed the FSRA for the first receipt of the RM990 million grant from Putrajaya for the redemption of Felda sukuk.

“The prime minister also announced during the Felda Settlers’ Day, on July 7, that the government has approved an annual allocation of up to RM990 million for Felda for 10 years starting this year for the redemption of Felda sukuk and to enable the agency to write off 80 percent of its settlers’ debt.

“Overall, the entire initiative will involve financial assistance to Felda amounting to RM9.9 billion over a 10-year period,” the statement said.

According to Felda, the prime minister’s statement had been misinterpreted to the extent of causing confusion among the public as it appeared to contradict the previous government's promise to write off the settlers' debts amounting to RM8.3 billion.

Earlier today, Anwar in a brief statement, kept his promises to release part of the FSRA agreement document pertaining to government guarantee for Felda, which he signed as the finance minister on June 26.

The three pages of the FSRA agreement showed that it was signed by Anwar on behalf of the government and the then-Felda chairperson Idris Jusoh and Felda director-general Amiruddin Abdul Satar.

The signing of the document was witnessed by deputy secretary-general of Treasury (Investment) Anis Rizana Mohd Zainudin.

In the same statement, Anwar also urged Muhyiddin Yassin to apologise for the slanderous statements made against him over the debt waiver scheme for Felda settlers.

Muhyiddin, in a letter of demand dated July 18 issued through Mssrs Rosli Dahlan Saravana Partnership, demanded an open and unconditional written apology from Anwar following the latter’s claim that the Felda settlers’ debts totalling RM8.3 billion had never been waived under Muhyiddin’s administration.

- Bernama

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