KUALA LUMPUR (June 21): Minister of Economic Affairs Datuk Seri Mohamed Azmin Ali has instructed the Federal Land Development Authority (Felda), which is embroiled in several controversial deals, to undertake an “external forensic audit to get to the bottom of this". 

Without pointing to any specific transactions, Azmin said in a tweet to Felda that it needs to “meet the highest standards of governance and best practices.” 

This follows on the heels of his Twitter posting yesterday, saying “I was briefed this morning by Felda Director-General Datuk Abdul Ghani Mohd Ali on Felda’s management and financial status.” 

Over the past few years, Felda has increasingly been put under the spotlight, owing to its involvement in a number of inexplicable deals. 

On Dec 21, 2017, it was reported to be at risk of losing its rights to strategic lands along Jalan Semarak, the result of allegedly dubious sale and purchase transactions. 

After much scrutiny and investigation by law enforcement authorities, the land, which was estimated to be worth RM200 million, was transferred back to Felda in March 2018. 

Its acquisition of a 37% non-controlling stake in Indonesia’s PT Eagle High Plantations Tbk from the Rajawali group, has also raised eyebrows. 

The Edge Weekly had reported that the US$550.4 million deal has come under fresh scrutiny, after more information emerged recently that the state-owned purchaser had gone ahead with the purchase, despite being fully aware of the many pitfalls involved in buying the stake, and is now sitting on paper losses of over RM1 billion. 

Established by the government in 1956, Felda is part of a national socio-economic land development scheme to alleviate poverty. To-date, it has assisted some 112,635 setters and owns about 31,950.93 hectares of land, which is mainly used to plant oil palms.