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23/02/2018

BOMBSHELL! FELDA LOST RM4.5 BILLION 2013-2016! HOW MUCH DID FELDA GROUP LOSE? MORE LOSSES EXPECTED 2017!

by e.s. shankar, Donplaypuks® intrepid correspondent for penekorek affairs




Please be clear that these accounts showing Felda's losses of RM4.5 billion relate to Felda and those of Felda Group, which own 33.7% of Felda Global Ventures Holdings Plc (FGVH) listed on the Kuala Lumpur Stock Exchange. These accounts do not include the P&L or Balance Sheet figures of FGVH Plc.

Felda directly owns 20% of FGVH share capital while the balance of 13.7% is held by Felda Asset Holdings Co S/B, a wholly owned subsidiary of Felda. Felda Group is therefore the single largest shareholder of FGVH.

Felda accounts are statutorily audited by the Auditor General's Department (AG). For the full audited accounts CLICK HERE.

For 2016, the AG has "qualified" the accounts by drawing attention to the continuous losses of RM4.5 billion for the 4 years from 2013-2016, dangerous cash flow deficit and bank debt of RM9 billion, as follows:


Felda lost close to RM4.5 billion between 2013-2016. However, the corresponding figures for the Group are nowhere to be found in the report. We can however assume that the Group losses are bound to be higher, probably about RM5 billion.



When Najib, who has taken on Felda as his pet project, suddenly announced the appointment of Shahrir Samad in January 2017 to replace Isa Samad as Felda Chairman, he did not outline the real disaster that had taken place at Felda. It of course reflects badly on Najib as a pathetic PM, as all top appointments to Felda and FGVH were made by him, and he has, through sheer incompetency and negligence, allowed the rot to set in at many a GLC.

The situation has taken a turn for the worse with MACC investigations having commenced over fraud allegations regarding  Felda's overseas and local hotel acquisitions, Jalan Semarak land in KL and other investments.

The detailed P&L shows that Felda's profits have also been dragged down by some RM12 million losses posted in 2015 & 2016 by its hotel division. Also, the 2015 Gross Loss of $14 million at Felda is a shocker! Shahrir's stated focus on selling assets like Maybank shares suggests he is clueless how to restore core business profitability.

Felda also has a big question mark over transparency on expenses, particularly:

1. Miscellaneous services - RM70 million (2015-RM56 million)
2. Miscellaneous expenses - RM68 million (2015-RM81 million)
3. Professional services - RM60 million (2015-RM42 million)
4. JV/Investment write-offs - RM60 million (2015-RM88 million)

Of concern too should be:
1. Investment in FGVH of RM4.7 billion whose market value is worth less than half its cost as the share price has tanked from its 2012 $4.55 IPO price to about RM2 currently, and as low as RM1.50.
2. FHVH RM1.69 billion in loans.
3. Dependency on FGVH for its lend lease debt of RM4.4 billion
4. Pretty stagnant palm oil prices plus threats of a EU ban.
5. Total bank loans and borrowings of RM9 billion, which will balloon further in 2017 due to the disastrous Eagle High Plantations, Indonesia (EHP) acquisition of RM2.26 billion, financed by a bank loan guaranteed by MoF!

Felda Group will likely see worse losses in 2017, given also its RM2.26 billion Investment in EHP which is now only worth RM620 million, a staggering write-down of RM1.64 billion in less than a year, and suspected to be a Najib fraud. Refer my earlier blog post. CLICK HERE.

The crux of Felda's problem is of course that of a half-past six prime minister with half-past six business acumen calling the shots, aided by political Chairmen appointees with even less business or  relevant management expertise.

I have said it before and I will say it again. Najib has the touch of the plague and the kiss of death about him. Everything he touches turns to dust and destruction.

When will UMNO/BN and the Malays learn not to allow mediocrity, incompetency and fraud to flourish?

10 comments:

C.Ross said...

Lucky most dunno how much is one billion!

LCT said...

Never mind lah, give BR1M and a packet of sugar kau tim.

George said...

In fact one of Malaysia's noted economists Dr K S Jomo warned the public about the cash flow deficit & mismanagement in FELDA.

He said the scandal in FELDA could be a bigger scandal than IMDB

Helen said...

This case will never end if settlers are happy with just few thousand given. They did not know the consequence of their shares in debts.

Mages said...

Pity the settlers, exploited by some fools

H.Mohan said...

Tengok lapuran ini, Felda bakal ditutup juga satu hari nanti kerana kerugian itu teramat besar setiap tahun. Sedar dan bagkitlah rakyat terutamanya bangsa Melayu !!!

Jason said...

Curi tak henti henti, bila baru stop? Mati pun mahu curi!

Quinoa MO1 said...

Pada yg cuak berita palsu, tgk annual report KLK, Sime Darby, dll & buat perbandingan. Mcm mana depa untung ek? Boleh tgk sbb laporan kewangan tahunan depa ada, tak dak OSA ka apa

SPJ said...

Just sell felda to sime darby. Settlers get to keep their land and sell their fruits to highest bidder instead of only to felda a discounted price. Sime can then make a general offer fir the rest of Eagle High, like what guthrie did to salim group plantation.

DS said...

If these Felda settlers vote Umno then they deserve all the misery inflicted upon them by Umno. ABUP