Felda liabilities surge 11 times in 2017

-A +A

KUALA LUMPUR (April 10): Felda's liabilities surged 11 times to RM14.4 billion in 2017 from RM1.2 billion in 2007, due to additional debt incurred by Felda to finance non-strategic investment, according to Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

In his speech during the tabling of the Felda White paper today, Mohamed Azmin said of the RM14.4 billion liabilities, 84% or RM12.1 billion represents Felda's group debt, whereas remaining 16% comprises outstanding payment to creditors and liability for replanting activities.

He said the jump in liabilities resulted in Felda's financing costs to increase from an average of RM3 million in 2007-2008 to an average of RM260 million in 2009-2017. Its gearing rose from 0.1 times in 2007 to 1.15 times in 2017.

It should be noted that the Finance Ministry, which approved a facility of RM577 million in 2018, has issued the remaining RM500 million in March 2019.

Related:

Felda's 2019 debt repayment seen at RM2.5b if loans failed to be restructured
Felda introduces new model for managing settlers' land
Forensic audit highlights questionable Felda deals, says Azmin Ali
Felda to introduce cash payment scheme to settlers
Azmin Ali: More police reports to be lodged on Felda
How Felda will use the RM6.23b govt aid
Govt to allocate financial assistance to address Felda's cash flow issues
Felda-FGV land lease agreement generates 50% less income than expected
Eagle High put option's 6% return lower than Felda investment policy allows

There has been 'massive fraud' at Felda, says Jomo