KUALA LUMPUR, JULY 15 — The Federal Land Consolidation and Rehabilitation Authority (FELCRA) Berhad needs to seriously implement the improvement recommendations put forward by the Public Accounts Committee (PAC) regarding the management of oil palm plantation procurement and comply with all statutory requirements.
PAC chairman Datuk Mas Ermieyati Samsudin said absolute compliance with the strengthened new procurement Standard Operating Procedures (SOPs) was very critical to ensure the sustainability of the company’s investments.
“It is also to avoid any risk of loss in the future and ensure the company’s long-term financial stability,” he said at a press conference in Parliament today.
Mas Ermieyati said the PAC had presented the Parliamentary PAC Statement on the Follow-up Action by the Ministry/Agency on the Recommendations of the Parliamentary PAC Statement Regarding the Management of Oil Palm Plantation Acquisition by the Federal Land Consolidation and Reclamation Authority (FELCRA) under the Ministry of Rural and Regional Development (KKDW), today.
He said the statement was to inform the follow-up actions taken by KKDW and FELCRA Berhad on the nine recommendations submitted by PAC, following the issue of governance weaknesses in the procurement of four commercial oil palm plantations as reported in the Auditor General’s Report (LKAN) 2/2025.
Mas Ermieyati said that to reduce the company’s financial burden, FELCRA decided to postpone any new commercial land bank acquisitions , and is now giving priority to the Estate Replanting Programme involving an allocation of RM52 million.
Regarding the investment aspect, he explained that changing operating costs and the need for a large-scale replanting program had shifted the Return on Investment (ROI) point for Telupid Estate from the original target of the ninth year to the 19th year (2040).
In this regard, he said PAC requested that future financial simulations be carried out by integrating break-even analysis.
Meanwhile, he informed that FELCRA’s new SOP now requires the external consultant’s viability assessment report to be presented to the Board of Directors, in addition to setting a cooling-off period of 15 to 30 days to sign the agreement.
“However, PAC emphasizes that compliance with this SOP is very critical given that its effectiveness has not yet been tested because no new commercial asset acquisitions have been implemented.”
“In conclusion, FELCRA Berhad must be serious in implementing the recommended actions and comply with all statutory requirements that have been set,” he said.
— BERNAMA
