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Felda's debt issue: Settlers' debt only written off in financial year ending 2022, says Anwar

KUALA LUMPUR: The unity government has followed through on its commitment to address the financial issues, amounting to billions of ringgit, faced by the Federal Land Development Authority (Felda).

Prime Minister Datuk Seri Anwar Ibrahim claimed Felda did not receive any funds under the 2021 and 2022 budgets by the Perikatan Nasional (PN) and Barisan Nasional-Perikatan Nasional (BN-PN) government, respectively.

He claimed whilst there was an agreement to allocate an annual grant of RM990 million to Felda for a period of 10 years, it was however not fully implemented by both previous federal governments.

He asserted the settler's loans remained in Felda's financial books until on or after the formation of the unity government and were only written off by Felda in the financial year ending 2022.

"Under Anwar's leadership, various steps were immediately taken to address Felda's issues above, which effectively remained unresolved.

"The government had allocated RM990 million to Felda for its restructuring scheme in this year's national budget.

"Anwar had executed two documents –letter of terms and conditions on May 15 and Assignment of Finance Service Reserve Accounts Agreements on June 19 – to enable an annual grant of RM990 million to be channelled to Felda.

"On July 18, the first annual grant of RM990 million was channelled to Felda," he claimed.

The PKR president said this in his defence to Bersatu president Tan Sri Muhyiddin Yassin's defamation suit over the Felda settlers' debt waiver issue.

Anwar further denied that the impugned statements he made referred to Muhyiddin, instead, they were in reference to the whole administration under the PN and BN-PN governments.

The Tambun member of parliament claimed that Muhyiddin failed to provide a complete picture of Felda's financial issues, the restructuring scheme or his (Muhyiddin's) actual involvement.

"The RM8.3 billion settler's loans remained on the financial books of Felda and were not written off during the administration of the PN government or BN-PN government but rather on or after the formation of the unity government.

"Anwar had in or around June this year, executed the Funding Agreements which enabled the annual provision of approximately RM1 billion in funding to be channelled to Felda for 10 years.

"The funding enabled Felda to meet its financial obligations for its benefit.

"The proposed RM8.3 billion debt write off announced by Muhyiddin on July 7, 2021, entailed numerous steps and approvals prior to RM8.3 billion debts being written off from the financial books of Felda.

"The RM8.3 billion settler's loans were not written off by Felda in the financial year ending 2021," he claimed.

Meanwhile, in response to Anwar's defence, Muhyiddin claimed that he had proven Felda's RM9.9 billion Sukuk and the government's allocation of a 10-year grant of RM990 million per annum during his tenure as prime minister in 2021.

"Since Muhyiddin resigned as the 8th prime minister on Aug 21, 2021, the responsibility for implementing the initiatives approved during his administration now falls on the next prime minister."

The Pagoh member of parliament claimed the unity government was unable to proceed with the implementation of the Felda settlers' debt write-off in 2021 as it had a major impact on the authority's cash flow.

"This means that it is the unity government that does not want to continue with the Felda settlers' debt write-off which had been implemented by Muhyiddin.

"Anwar's motive for doing so is clear that it is for him to blame Muhyiddin.

"The defendant (Anwar) subsequently boasted on Felda Settlers' Day 2023 that it was him who approved and implemented the Felda settlers' debt write-off.

"The defendant's low-level politics of blaming others and to pride himself is very immoral," claimed Muhyiddin.

Muhyiddin further claimed that Anwar deliberately manipulated the facts by confusing the Felda's debt issue and the Felda settlers' debt issue which were clearly two different matters.

He claimed that Anwar as the Prime Minister and Finance Minister should be aware of the distinction between the two.

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