Felcra’s debt: Zahid promises to resolve issue, forms committee

Deputy Prime Minister Ahmad Zahid Hamidi said he will take proactive steps to address the problems experienced by Felcra Berhad and its subsidiaries, due to the entity's high debt burden.

Zahid, who is also rural and regional development minister, said a committee had been formed to study the recommendations put forward by the Public Accounts Committee (PAC) to resolve the issue.

“I would like to thank the auditor-general and PAC for highlighting this issue, and as the minister in charge, I must resolve this problem and find a way to address the irregularities,” he told the media at the opening of the Kuala Kangsar Umno division representative meeting at Dewan Jubli Perak today.

Zahid said he has conducted research and discussions with the chief executive officer and subsidiaries under Felcra to resolve the debt problems.

The discussions included finding any agency or company interested in buying a commercial development project in Jalan Semarak, Kuala Lumpur.

“Thus far, the building has not been sold, but as the minister responsible for rectifying the accounts and investments in Felcra, I have identified at least three agencies or companies which have the potential to purchase the completed building.

“The construction cost of the building is quite high, and we aim to sell it based on demand and market price so that the proceeds can repay Felcra's debts to the government,” he said.

Five recommendations

On June 26, the PAC made five recommendations to the government to monitor the high debt issue incurred by Felcra Berhad and its subsidiaries.

PAC recommended that the Rural and Regional Development Ministry and Felcra exercise greater responsibility and strict regulation of their subsidiaries to generate profits and achieve their establishment goals.

Zahid said the views and recommendations made by PAC are related to the issues highlighted in the Auditor-General's Report, which was tabled in Parliament on July 4.

He added that these recommendations will be debated in Parliament tomorrow.

- Bernama

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