'Felda cash position doesn't reflect assets'

Felda's cash position that saw a drop from RM4.08 billion on Dec 31, 2004 to RM1.35 billion at the end of last year does not reflect the true value of the land development authority's entire assets, the Dewan Negara was told today.

Deputy Minister in the Prime Minister's Department Datuk Ahmad Maslan said the reduction in cash position was due to expenditures and disbursement of allocations to develop the Felda community during the period.

The cash figure also did not include the value of shares belonging to Felda which was about RM4 billion, he said in a reply to Senator Datuk Akhbar Ali who wanted to know factors that caused Felda's asset value was reported to have dropped by almost RM3 billion over the five-year period and what appropriate actions had been taken on the people involved.

Ahmad said that although Felda's cash position had decreased during the period, Felda possessed current and fixed assets whose value had jumped RM6.2 billion from RM9.17 billion in 2004 to RM15.37 billion in 2009.

He said the biggest component of expenditures disbursed by Felda over the five-year period was to finance replantation development programmes carried out on the settlers' land which involved sustenance allowances for 17,705 settlers from RM1,000 to RM1,300 per 4.046 hectare a month.

Besides, there were yield advance payments from RM1,400 to RM1,500 per 4.046 hectare a month involving 38,058 settlers, he said.

"This financing also involved the cost of replanting which was estimated at RM2,630 per acre (0.404 hectare) for a 37,302 acre (15,095.6 hectare) area, bringing the entire cost paid for replanting to RM2.42 billion," he said.

Ahmad said Felda also spent RM2.41 billlion for the settlers and new generations to carry out socio-economic activities, skills training, productivity incentive bonus payment, Hari Raya contribution, insurance claims, and charity activities.

"All these were given to help the settler's finances besides as incentives to develop the scheme," he said.

Meanwhile, RM603 million was disbursed to 19,546 settlers in the form of loans for the purpose of house expansion with the maximum value given out being RM40,000 for each house, he said.

"The objective of this allocation is for Felda settlers to expand their houses besides enhancing quality of life, and this loan is not subject to riba' and has to be repaid in 20 years," he said.

Ahmad said Felda also spent allocations totalling RM269 million for poverty eradication programmes in Sabah using profits from its plantations in the state.

A total of RM220 million was used to help solve water supply problems in Felda areas in Pahang and RM134 million for the Felda Settlers' Housing (PWF) Project to help Felda generations own houses, he said.

"The concept of five PWF projects under phase one is affordable homes whereby the price is RM35,000 for a low-cost house and RM65,000 for a low-medium and the cost of infrastructure is paid by Felda where each unit will involve a subsidy of about RM20,000," he said.
-- BERNAMA