KUALA LUMPUR (Feb 4): The Edge weekly in its latest cover story turns to the quandary faced by the Federal Land Development Authority (FELDA) and the unenviable task faced by its newly appointed chairman Tan Sri Shahrir Samad to clean up the mess in the plantation giant, which has been hit by a spate of morale-sapping news.

The Edge’s Jose Barrock and Chester Tay analysed what lies ahead for both Shahrir and FELDA, which has been long considered as a vote bank for the ruling Barisan Nasional (BN) coalition, given that FELDA settlers comprise the majority of voters in 54 constituencies, mostly in the Malay heartland.

The Edge said that with the 14th general election looming – it must called before August next year at the latest – the Umno-led BN cannot afford to see its power eroded in the FELDA stronghold.

The weekly highlighted that lately, FELDA has been in the spotlight for all the wrong reasons.

FELDA made headlines when it purportedly offered a high price for a 37% stake in Indonesian plantation outfit PT Eagle High Plantations.

Also, the Malaysian Anti Corruption Commission (MACC) nabbed five high-ranking FELDA personnel for alleged corruption involving a sturgeon fish-rearing project worth about US$100 million.

Even more trouble piled up on the already beleagued FELDA when MACC arrested IRIS Corp Bhd’s deputy managing director Datuk Hamdan Mohd Hassan for offences purportedly linked to an e-passport project in the Republic of Guinea. IRIS is FELDA’s 21.33-owned unit.

Another thorn in FELDA and Prime Minister Datuk Seri Najib Razak’s side is the public-listed Felda Global Ventures Holdings Bhd (FGV), in which the agency is the single largest shareholder, with a 20% stake.

FGV’s stock hit a historical high of RM4.82 in early July 2012, slightly more than one week after its listing. Since then its price has plunged 60%, closing at RM1.87 last Thursday. Market capitalisation of RM10 billion has been wiped since its listing, said the Edge.

The weekly in its analysis looks at all these negative vibes and questioned if the issues surrounding FELDA could weigh down BN and Najib’s popularity.

For what lies ahead for Shahrir and FELDA, get a copy of the Edge for the week of Feb 6 – Feb 12 avalaible at newsstands now.

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