Felda will take action against a legal firm which was involved in its suit against 354 settlers at Felda Kemahang 3 in Kelantan.

Minister in the Prime Minister's Department Ahmad Maslan said Felda was currently studying a suitable action against the firm which had caused the agency to lose its suit against the settlers.

“The absence of the lawyer during the hearing due to technical reasons were very much regretted and has tarnished Felda's good name,” he said in a statement to the media after the Umno Supreme Council meeting in Kuala Lumpur today.

Yesterday, the Federal Court dismissed Felda’s application to review its ruling which denied the agency leave to appeal against the Kota Baru High Court’s decision on Jan 13, 2008.

With the decision, Felda would now have to pay RM11 million in general damages and interest to the settlers.

Ahmad said it was feared the case would be misinterpreted by other  settlers as the agency was now facing two other charges for manipulating oil palm grading filed by the settlers in Felda Maokil, Pagoh and Felda Gugusan Raja Alias in Negri Sembilan.

“I would like to stress that the Federal Court ruling was not due to fraud or conspiracy committed by Felda as alleged by certain quarters,” he said.

Ahmad said every transaction was made in a transparent manner and the sales and purchase receipts were given to each Felda settler who sold the oil palm yield to the Felda factory.

“If they don’t agree with what was stated in the receipt, they should bring it up to the factory immediately, and not make a compilation of fraud allegations over a long period of time,” he said.

Hence, he also reminded the settlers not to be influenced by any quarters, especially those with personal interests, to file a legal suit against Felda.

- Bernama