AG's Report: Concerns over Felda, PR1MA

KUALA LUMPUR: The Auditor General has raised concerns over the financial health of the Federal Land Development Authority (Felda) and PR1MA Corporation Malaysia (PR1MA).

"They (Felda and PR1MA) face ongoing issues based on their level of debts and reliance on government assistance," Auditor General Datuk Wan Suraya Wan Mohd Radzi said today.

The assistance from the government comes in the form of grants, loans, and guarantees.

Last June, Putrajaya agreed to restructure Felda's debts through the issuance of sukuk and revolving credit in a bid to restore the state palm oil plantation agency's finances.

In July, it was reported that the government would provide a guarantee for Felda to issue up to RM9.9 billion sukuk, according to the Finance Ministry.

In a statement, the ministry said the government would allocate up to RM1 billion annually for the redemption of Felda sukuk.

The sukuk, among other things, will finance the settlement of Felda settlers' debts.

PR1MA meanwhile, has reportedly struggled to complete some projects and clear its inventory. Last May,the government said it would ensure there would not be any more sick PR1MA projects by 2024.

The Auditor General's 2022 report is expected to be tabled in the Dewan Rakyat this morning.

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