The Malaysian Anti-Corruption Commission (MACC) has been urged to probe alleged irregularities in the management of the Federal Land Development Authority (Felda).

NONE A report lodged by Klang MP Charles Santiago ( second from left ) follows confirmation by Deputy Minister in the Prime Minister’s Department Ahmad Maslan that Felda’s cash reserves have plunged from RM4.08 billion in 2004 to RM1.35 billion in 2009.

Speaking to reporters later, Santiago said that although Ahmad claimed that the money was used for the welfare of settlers and building the new Felda headquarters, there were elements of mismanagement and abuse of power.

PKR leader Dr Tan Kee Kwong, who accompanied Santiago, described the new headquarters was a “five-star” building next to the Singapore High Commission, along upmarket Jalan Tun Razak.

He said the cost of the building was RM662 million and construction was awarded to politically well-linked Naza TTDI Sdn Bhd.

"I was reliably informed that out of RM662 million, RM230 million was paid upfront", said Tan, who was deputy minister of land and cooperatives from 1999 to 2004, a position that required him to reply in Parliament all questions regarding Felda matters.

"I want to ask the Felda management and the prime minister - who agreed to the construction? Can Naza TTDI guaranttee the project will not be abandoned?"

New HQ questionable

Tan claimed that there was a proposal in 2006 to demolish the current Felda headquarters on Jalan Semarak, Kuala Lumpur, to make way for a new building at a cost of only RM220 million because the land was owned by Felda.

NONE “The tender to demolish the old building was called... even Prime Minister Abdullah Ahmad Badawi agreed to the ground breaking ceremony,” he said.

He questioned the need to build a new Felda headquarters for RM662 million when the proposal to build one at a third of the cost existed.

Tan also urged the government to justify the need for Felda to acquire an expensive piece of land for its new headquarters when it already owns plenty of land along Jalan Semarak.

Tan speculated that Umno and BN were embarking on a slash and burn strategy because their hold of the federal government was under threat.

"(So,) they want to gasak (grab) and sapu (sweep) faster,” he charged.

Replanting fund

According to Ahmad, the Felda’s shortfall in cash reserves over the five-year period was spend on welfare purposes - RM2 billion for replanting crops, RM603 million for interest-free housing loans, RM253 million for the Sabah poverty eradication fund and RM662 million for the new Felda headquarters.

Disputing this, Tan claims that the replanting fund was financed by the collection of RM5 from Felda settlers for every tonne of oil palm sold, hence there is no reason for spending an additional RM2 billion for replanting.

"Felda is a government linked company which has social responsibility...... the rakyat and Felda settlers should wake up to demand for answer," added Santiago, who pledged to pursue the issue in Parliament during the debate of 10th Malaysia Plan.

Their report was received by MACC deputy commissioner and Kuala Lumpur director Mohd Yusoff Akope.