Latest news with #FELCRABerhad
The Sun
2 days ago
- Business
- The Sun
Serious irregularities found in 2025 Auditor-General's Report
KUALA LUMPUR: Serious irregularities were uncovered in three audits detailed in the 2025 Auditor-General's Report (LKAN) Series 2, tabled in the Dewan Rakyat today. Governance weaknesses were identified in FELCRA Berhad's oil palm plantation leasing procurements, involving RM241.76 million from 2022 to 2024. Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi highlighted flaws in Universiti Kebangsaan Malaysia's (UKM) tender procurement process, involving RM58.45 million. 'Late penalty charges of RM162.75 million for the GEMPITA supply contract remain uncollected, while RM1.42 million in penalties were not imposed for maintenance services,' she said. Additionally, RM107.54 million in procurements were fragmented. The subsidised cooking oil programme by the Ministry of Domestic Trade and Cost of Living (KPDN) also showed monitoring lapses, with no targeted allocation for eligible groups. Wan Suraya urged KPDN to continue reducing quotas to curb leakages. The Selective Pre-Q Procurement Method introduced by the Ministry of Finance was criticised for lacking transparency. 'Some companies failing initial evaluations were still selected at later stages,' she noted, recommending open tenders for accountability. Five audits covering RM48.873 billion in programmes were reviewed, with 22 recommendations submitted. The National Audit Department recovered RM157.73 million from 2024 to June 2025 through penalties and tax collections. The report is accessible via and - Bernama
The Sun
3 days ago
- Business
- The Sun
FELCRA should review oil palm plantation acquisitions to ensure good governance - AG's Report
KUALA LUMPUR: The National Audit Department (NAD) has recommended that the acquisition of oil palm plantations under the Federal Land Consolidation and Rehabilitation Authority's (FELCRA) transformation plan be reviewed to ensure investments would bring 'value-for-money' returns based on its financial capabilities. The Auditor-General's Report 2/2025 presented at the Dewan Rakyat today also included recommnedations that the FELCRA Berhad board of directors be responsible in ensuring that oil palm plantation acquisitions were organised in line with their fiduciary duty and good governance practices. Also, the agency was advised to make improvements to its administrative process and that all decisions regarding oil palm plantation acquisitions be made collectively and in line with previous resolutions and the company's constitution. 'Any changes to the board of directors' decisions need to be recorded and confirmation be obtained through a new and clear resolution, with minutes recorded in an organised manner and documented accordingly by the company secretary in line with the Constitution of FELCRA Berhad. 'In addition, FELCRA Berhad also needs to set a minimum timeline between approval and implementation of the agreement to provide room for adequate risk assessment and review,' the report stated. The report also recommended that improvements be made to amendments of the Acquisition Manual that came into effect in September 2024, such as appointment of qualified external consultants to conduct objective due diligence and market value assessments before making any acquisition decisions, and that the consultant's report must be presented to the board of directors as a vital supporting document in investment decisions. Also, a comprehensive study must be conducted to assess financial aspects encompassing break-even points, return on investment, hidden costs, mortgage liabilities and physical rehabilitation needs before finalising any decision. 'Inspection and certification of the status of moveable access need to be conducted before and during the process of vacant possession for oil palm plantations to ensure ownership of the assets as listed in the agreement. 'Verification of physical assets, preparation of a complete asset register of all farm machinery and facilities must also be carried out as stated in the relevant agreement,' the report stated. Auditor-general Datuk Seri Wan Suraya Wan Mohd Radzi issued a statement today stating that there were weaknesses in governance linked to the acquisition of four oil palm plantations by FELCRA Berhad - the Telupid Estate, in Sabah, the Dabong Estate, the Sungai Raiwt 2 Estate and the Aring Estate in Kelantan valued at RM241.76 million between 2022 and 2024. The full AG's Report can be accessed at the following link – Bernama
Barnama
3 days ago
- Business
- Barnama
FELCRA Should Review Oil Palm Plantation Acquisitions To Ensure Good Governance - AG's Report
KUALA LUMPUR, July 21 (Bernama) -- The National Audit Department (NAD) has recommended that the acquisition of oil palm plantations under the Federal Land Consolidation and Rehabilitation Authority's (FELCRA) transformation plan be reviewed to ensure investments would bring 'value-for-money' returns based on its financial capabilities. The Auditor-General's Report 2/2025 presented at the Dewan Rakyat today also included recommnedations that the FELCRA Berhad board of directors be responsible in ensuring that oil palm plantation acquisitions were organised in line with their fiduciary duty and good governance practices. Also, the agency was advised to make improvements to its administrative process and that all decisions regarding oil palm plantation acquisitions be made collectively and in line with previous resolutions and the company's constitution. 'Any changes to the board of directors' decisions need to be recorded and confirmation be obtained through a new and clear resolution, with minutes recorded in an organised manner and documented accordingly by the company secretary in line with the Constitution of FELCRA Berhad. 'In addition, FELCRA Berhad also needs to set a minimum timeline between approval and implementation of the agreement to provide room for adequate risk assessment and review,' the report stated. The report also recommended that improvements be made to amendments of the Acquisition Manual that came into effect in September 2024, such as appointment of qualified external consultants to conduct objective due diligence and market value assessments before making any acquisition decisions, and that the consultant's report must be presented to the board of directors as a vital supporting document in investment decisions. Also, a comprehensive study must be conducted to assess financial aspects encompassing break-even points, return on investment, hidden costs, mortgage liabilities and physical rehabilitation needs before finalising any decision. 'Inspection and certification of the status of moveable access need to be conducted before and during the process of vacant possession for oil palm plantations to ensure ownership of the assets as listed in the agreement. 'Verification of physical assets, preparation of a complete asset register of all farm machinery and facilities must also be carried out as stated in the relevant agreement,' the report stated.
Malay Mail
3 days ago
- Business
- Malay Mail
Auditor-General flags shady deals in Felcra, UKM, and Army armoured vehicle procurements
KUALA LUMPUR, July 21 — Serious irregularities identified in three audits were detailed in the 2025 Auditor-General's Report (LKAN) Series 2, which was tabled in the Dewan Rakyat today. Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi said there were governance weaknesses in the implementation of leasing procurements for four oil palm plantations by FELCRA Berhad, involving acquisitions worth RM241.76 million from 2022 to 2024. She said there were serious irregularities and weaknesses in the tender procurement process and procurement governance at Universiti Kebangsaan Malaysia (UKM), involving three tenders worth RM58.45 million. '(There were) weaknesses in contract administration and procurement management for the army's armoured vehicles between 2020 and 2023, including RM162.75 million in penalties that have yet to be collected and RM1.42 million in penalties not imposed on the company for delays in maintenance services,' she said in a statement. In addition, she said the procurement of maintenance services, repairs, and supply of spare parts for armoured vehicles amounting to RM107.54 million was found to have been carried out through contract splitting. The audit also found weaknesses in the implementation, monitoring, and enforcement of the subsidised cooking oil programme by the Ministry of Domestic Trade and Cost of Living (KPDN), particularly the absence of targeted allocation for eligible and needy groups. Wan Suraya said KPDN's efforts to reduce the subsidised cooking oil supply quota since 2016 should be continued, as this measure could have a positive impact on curbing leakages through more targeted distribution, in line with audit recommendations. She added that the Selective Pre-Q Procurement Method introduced by the Ministry of Finance allowed room for manipulation and lacked transparency, as some companies that either failed to meet the evaluation criteria at the first stage or were not invited were still selected and evaluated at the second stage. 'The audit recommends that the method should not be continued and that the open tender method is more appropriate to ensure accountability and transparency in the procurement process,' she said. A total of five audits involving seven ministries were reported, covering audited programmes, activities and projects worth RM48.873 billion. The Auditor-General submitted 22 audit recommendations to the ministries, departments and government-owned companies. Wan Suraya also stated that audits by the National Audit Department from 2024 to June 2025 had helped the government recover RM157.73 million, including through the penalty claims, outstanding rent and collection of duties and taxes. The public can access the report from 10 am today via and — Bernama
