KUALA LUMPUR: Indonesia’s Eagle High Plantations (EHP) is contesting the Federal Land Development Authority’s (FELDA) decision to sell back its 37 pct stake in EHP, Minister of Economic Affairs, Datuk Seri Mohamed Azmin Ali revealed today.
He said this was despite the fact that when FELDA acquired the shares in 2015, there was a “put option” that allowed it to sell the stake back at the original purchase price plus a six per cent annual interest charge to be borne by EHP.
Speaking to reporters after tabling the White Paper on FELDA at the Parliament, Azmin said the government had decided to exercise the option and had issued a notice to EHP earlier this year.
"When we were forced to purchase (EHP) then, it (the option to sell back) was part of the agreement. But I was informed that EHP is contesting the decision and is going for arbitration,” he said, adding that the government would go through the due process.
Earlier, Azmin told the Dewan Rakyat that RM2.7 billion of FELDA's funds was allegedly used to win political support during the 14th general election.
He said the government has agreed to channel RM6.23 billion to FELDA in the form of government grants, loans and guarantees as required, and targeted to restore the agency’s financial position within five years.