
Governance slip found in Felcra's RM241mil plantation acquisitions
Felcra Berhad went ahead with the RM62.29mil procurement for one oil palm plantation, known as the Telupid estate, despite a feasibility study concluding that the land was not economically viable due to poor soil and uneven terrain.
The report also said that the non-executive director representing the Finance Ministry had disagreed with the acquisition, citing the feasibility study's findings that the soil series and topography were only moderately suitable for development.
It also highlighted that another independent non-executive director believed that external consultants should have been appointed to provide a professional assessment of the proposed acquisition.
'The acquisition was nonetheless proceeded with, even though the feasibility report indicated that the Telupid estate was not economically viable,' said the report that was released yesterday.
The board of directors had agreed to defer the procurement and to issue a request for proposal to appoint external consultants to conduct a new feasibility study and cost-benefit analysis of the investment, the report said.
'The board member representing the Economy Ministry also expressed the view that management should obtain confirmation from the Finance Ministry regarding the investment approval procedures for Ministry of Finance Incorporated companies,' it said.
In response, Felcra Berhad said it estimated the Telupid estate's yield for 2025 at 12 metric tonnes per hectare (mt/ha), with a projected gross profit of RM1.37mil.
Following the Environmental Impact Assessment (EIA) report approval, Felcra Berhad said it had implemented several plans to improve the viability of the estate and optimise palm oil production.
These included a phased replanting programme from 2025 to 2028, approved by the board on Feb 20, 2025, starting with 215ha under Phase 1.
Felcra Berhad also said it had taken steps to increase income and control expenditure to ensure the estate would generate profit following recovery efforts.
The AG report recommended Felcra improve its governance processes to ensure that all decisions related to plantation acquisitions are made collectively, align with previous resolutions and follow the company's constitution, rules and regulations.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Sun
36 minutes ago
- The Sun
No application needed for RM100 SARA aid, warns MOF
SEMPORNA: The Finance Ministry (MOF) has reiterated that the one-off RM100 Sumbangan Asas Rahmah (SARA) cash aid, set for distribution on Aug 31, does not require any application process. Eligible recipients will receive the funds directly credited to their identification cards. Deputy Treasury secretary-general (Policy) Datuk Zamzuri Abdul Aziz clarified that the aid would not be distributed through any e-wallet service. 'The public is urged to avoid being deceived by any scam claiming that they can assist with applications or providing links to any e-wallet,' he said during an inspection of the Rahmah Cash Aid programme in Pulau Bum Bum. Zamzuri emphasized that the RM100 aid would be directly credited to the identification cards of individuals aged 18 and above, with no intermediaries involved. - Bernama


Malaysiakini
an hour ago
- Malaysiakini
No application needed for one-off RM100 Sara aid
The Finance Ministry has issued a reminder that the one-off RM100 Rahmah Necessities Aid on Aug 31 does not require any application and will be directly credited into each recipient's identification card. Deputy Treasury secretary-general (Policy) Zamzuri Abdul Aziz said the cash aid did not utilise any e-Wallet service as well.

Barnama
an hour ago
- Barnama
No Application Required For One-off RM100 SARA Aid
SEMPORNA, July 26 (Bernama) -- The Finance Ministry (MOF) has issued a reminder that the one-off RM100 Sumbangan Asas Rahmah (SARA) cash aid on Aug 31 did not require any application and will be directly credited into each recipient's identification card. Deputy Treasury secretary-general (Policy) Datuk Zamzuri Abdul Aziz said the cash aid did not utlise any e-Wallet service as well. "As such, the public is urged to avoid being deceived by any scam claiming that they can assist with applications or providing links to any e-Wallet,' he told reporters after inspecting the Rahmah Cash Aid programme in Pulau Bum Bum here today.