PAC gives debt-addled Felcra, govt 2 months to buck up

PARLIAMENT | The Public Accounts Committee (PAC) has given the government and Felcra two months to implement its recommendations regarding the GLC’s accrued debt.

During a press conference, PAC chairperson Mas Ermieyati Samsudin emphasised the importance of the committee’s five recommendations, formulated after a thorough review of the troubles plaguing the corporation.

“PAC is giving them two months before calling them back for follow-up proceedings so that we can see if the Finance Ministry and Felcra have taken the recommendations,” she said today.

Mas (above, centre) highlighted that the losses incurred by Felcra’s subsidiaries were the primary contributors to Felcra’s debt.

She pointed out that Felcra Properties owed Felcra RM842.7 million, and the government had also loaned Felcra RM544 million to develop the Semarak20 commercial project on Jalan Semarak, Kuala Lumpur.

Among the five recommendations is that Felcra review its structure and operations to align with its original goals, establishment, and social obligation to safeguard the interests of its stakeholders and the development of rural communities.

“Both the Rural and Regional Development Ministry and Felcra also need to be more responsible and strict in regulating the subsidiary companies to generate profits and achieve the goal of its establishment.

“They also need to report the latest development on the debt payment status to the government and the implementation of the strategy on the Semarak20 project to us every three months as a monitoring mechanism,” she explained.

Auditor-General’s Report findings

Mas also recommended that Felcra build up its capabilities before venturing into fields other than its core business.

She added that the report was presented after the PAC conducted nine proceedings from June 27, 2023, to February 9, 2024.

“Fifteen witnesses were called from the National Audit Department, Finance Ministry, Rural and Regional Development Ministry, Felcra, and WZR Group, the contractor appointed to develop Semarak20,” she said.

Two former Felcra chairpersons, Bung Moktar Radin and Tajuddin Abdul Rahman, were among those summoned. Tajuddin held the post between 2008 and 2013, while Bung was in office from 2013 to 2018.

PAC’s proceedings on Felcra was prompted by the findings of the Auditor-General’s Report 2021 Series 2, which revealed that Felcra’s debt arrears had skyrocketed to RM312.22 million as of December 31, 2021 - a staggering increase from RM82 million in the previous year.

The Auditor-General’s Department also found that Felcra owed the government RM3.67 billion as of December 31, 2021.

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