Latest news with #Felcra
The Star
a day ago
- Business
- The Star
National Audit Department recovers over RM157mil in one year
KUALA LUMPUR: A total of RM157.73mil has been recovered by the National Audit Department through audits done between 2024 and June this year, says Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi. She said the amount was collected through penalty claims, outstanding rent, the collection of Liquidated Ascertained Damages (LAD), overdue land leases, and the collection of duties and taxes. 'The amendments on the Audit Act 1957 (Act 62) also empowers the Auditor-General to audit other bodies, including registered companies that receive financial guarantees from the government. '(This is) to track public funds through the new approach of 'Follow The Public Money Audit', issue any guidelines if necessary and provide any recommendations in addressing serious misconduct to prevent the misuse of public funds,' she said in a statement yesterday. She has also revealed that a total of 1,856 gazetted government companies have been audited through the eSelfAudit system. Wan Suraya said five audits have been conducted involving seven ministries, with the total costs of audited programmes and projects reaching RM48.873bil. 'The scope of the audit encompasses programmes, activities or projects that were implemented within the 11th and 12th Malaysia Plan.' The audits, she said, had found irregularities involving several agencies such as Felcra, Universiti Kebangsaan Malaysia and the army. For Felcra, it was revealed that there were weaknesses in governance in the procurement implementation of leasing one oil palm plantation in Sandakan, Sabah, and three oil palm plantations in Gua Musang, Kelantan, which involved procurements totaling RM241.76mil in the period from 2022 to 2024. Meanwhile, the audits on the procurement and services at UKM found irregularities in tender and procurement processes involving RM58.45mil. 'This happened when the tender procurement committee had chosen companies that were not recommended by the technical evaluation committee, financial evaluation committee and pre-tender committee,' said Wan Suraya. She said there were also weaknesses in the contract administration and procurement management under the armed vehicles management by the army, which saw a total of RM162.75mil failed to be collected. Fines on the company causing the delay in maintenance, repair and supply of spare parts, were worth RM1.42mil. 'In addition, it was found that the procurement of maintenance services, repairs and the supply of spare parts for armored vehicles totaling RM107.54mil was carried out in small fragmented parts,' said Wan Suraya.
New Straits Times
2 days ago
- Business
- New Straits Times
Auditor General flags poor governance in Felcra's RM241mil land deals
KUALA LUMPUR: The Auditor General's Report 2/2025 has raised concerns over major governance failures in Felcra Bhd's RM241.76 million purchase of four oil palm estates carried out between 2022 and 2024. Auditor General Datuk Wan Suraya Wan Mohd Radzi said serious irregularities and weaknesses in governance were highlighted in the report such as the procurement process, price valuation, yield performance, and compliance with board resolutions and agreements. "The acquisition of the Telupid Estate was approved despite objections from board members and a viability report that rated the land as less feasible due to its terrain and soil conditions. "Additionally, procurement decisions were rushed and not properly documented." Among the most glaring issues was Felcra's purchase of the Telupid Estate in Sabah for RM62.29 million. The land was deemed less viable for oil palm cultivation due to steep slopes and unsuitable soil series. Despite an earlier board decision to defer the purchase and appoint an external consultant, the acquisition was approved 22 days later without the consultant being engaged. Two directors had raised concerns over the lack of independent analysis and requested for a delay, but these were ultimately disregarded. A similar pattern occurred in the RM92.44 million lease acquisition of the Aring Estate in Kelantan. Board members had abstained from voting, citing governance concerns and the absence of mitigation plans should the investment underperform. Nonetheless, Felcra proceeded to sign the lease agreement just seven days after board approval. "The Board of Directors proceeded with the acquisition despite some board members abstaining from the decision. "There was no evidence that appropriate action was taken regarding the issues raised by the board members before the acquisition decision was finalised. "The first payment was made on Sept 27, 2023, 12 days after the agreement was signed." Two other estates purchased were Dabong and Sg. Rawit 2, valued at RM66.15 million and RM20.88 million respectively. The report also found that projected palm oil yields across all estates were overly optimistic. While Felcra had set post-recovery targets as high as 18 metric tonnes per hectare for some estates, viability assessments revealed that significant portions of land, especially at the Telupid site, were unsuitable for planting due to steep terrain exceeding 250 metres in elevation, breaching agricultural guidelines. Three of the estates were located in Gua Musang, Kelantan, and were acquired via lease agreements. The fourth was purchased outright in Sabah. Felcra had set a strategic goal to acquire up to 30,000 hectares of plantation land within five years to help cover its RM210 million annual operating expenditure. However, Wan Suraya warned that the lack of proper governance and risk assessment in these transactions could undermine that ambition. "The governance of high-value procurement must be strengthened to prevent wastage and ensure value for money," she said. The Auditor General recommended that Felcra improve its internal controls, ensure all board decisions are properly deliberated and recorded, and adhere strictly to procurement protocols in future land acquisitions.
The Star
2 days ago
- Business
- The Star
Auditor-General's report: Felcra's acquisition of Gua Musang oil palm estates hasty
PETALING JAYA: The acquisition process of three oil palm estates in Gua Musang, Kelantan was rushed, with agreements signed just seven to 12 days after getting approval from Felcra Bhd's board of directors, according to the Auditor-General's Report 2/2025. These include the Dabong estate and Sungai Rawit 2 estate (approved in Board Meeting No. 207/2022), as well as the Aring estate (approved in Special Board Meeting No. 217/2023). "The acquisition of all three estates relied only on feasibility reports prepared by a Felcra Bhd subsidiary. "Financially, the investments were questionable due to long payback periods of 11 to 22 years,even after factoring in recovery work. "On top of that, extra costs including lease payments to Kelantan state agencies were not fully considered. "Aside from that, palm oil yields from the estates in 2022 to 2024 were low and had not met production targets. "Felcra is expected to spend RM5.98mil on recovery works to improve yields at these estates," read the report that was released on Monday (July 21). It also highlighted that land selected for investment should not have unresolved legal or financial issues. In this case, the leasehold land owned by the Kelantan Islamic Religious and Malay Customs Council (Maik) came with existing debt tied to a company, posing financial risk if the company fails to pay. As of April 2025, the lease registration for Aring estate had not been completed due to pending approval from the Kelantan state exco, delaying the settlement of the remaining RM30.97mil payment. The report also found that Felcra also failed to comply with contract terms requiring verification of assets and machinery during vacant possession for Dabong and Aring Estates. "No asset registry was prepared, and audit visits found discrepancies between the number of assets stated and those actually on site," it said. In response, Felcra said that a recovery cost of RM3.74mil was needed during the acquisition of the Aring Estate to ensure smooth production, especially for tasks such as weed control and frond pruning. "Recovery work is still ongoing at the estate, including the construction of pest control drains, and is expected to be completed by May 2025," said Felcra. On the verification of assets, Felcra said "the estate was purchased on a "lock, stock, and barrel" basis, meaning all assets on the estate were included in the purchase." "Felcra took immediate action by verifying and documenting the receipt of assets and machinery through the estate manager on April 7 2025," said Felcra. 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. "Any changes to earlier board decisions must be clearly documented, confirmed through a new resolution, and properly recorded by the company secretary," read the report.
The Star
2 days ago
- Business
- The Star
National Audit Dept recovers over RM150mil from 2024 to June
KUALA LUMPUR: A total of RM157.73mil has been recovered by the National Audit Department through audits done between 2024 and June this year, says Auditor-General Datuk Seri Wan Suraya Wan Mohd Radzi. She said that the amount was collected through penalty claims, outstanding rent, the collection of Liquidated Ascertained Damages (LAD), overdue land leases, and the collection of duties and taxes. 'The amendments on the Audit Act 1957 (Act 62) also empower the Auditor-General to audit other bodies, including registered companies that receive financial guarantees from the government. '(This is) to track public funds through the new approach of 'Follow The Public Money Audit', issue any guidelines if necessary and provide any recommendations in addressing serious misconduct to prevent the misuse of public funds,' she said in a statement on Monday (July 21). She has also revealed that a total of 1,856 gazetted government companies have been audited through the eSelfAudit system. Wan Suraya also said that five audits have been conducted involving seven ministries, with the total costs of audited programmes and projects reaching RM48.873bil. 'The scope of the audit encompasses programmes, activities or projects that were implemented within the 11th and 12th Malaysia Plan,' she said. The audits, she said, had found irregularities involving several agencies such as Felcra, Universiti Kebangsaan Malaysia and Armed Forces. For Felcra, it was revealed that there were weaknesses in governance in the procurement implementation of leasing one palm oil plantation in Sandakan, Sabah, and three palm oil plantations in Gua Musang, Kelantan involved procurements totalling RM241.76mil in the period from 2022 to 2024. Meanwhile, the audits on the procurement and services at UKM found irregularities in tender and procurement processes involving RM58.45mil. 'This happened when the tender procurement committee had chosen companies that were not recommended by the technical evaluation committee, financial evaluation committee and pre-tender committee,' said Wan Suraya. She added that there were also weaknesses in the contract administration and procurement management under the armed vehicles management by the Armed Forces, which saw a total of RM162.75mil fail to be collected. Fines on the company causing the delay in maintenance, repair and supply of spare parts, worth RM1.42mil. 'In addition, it was found that the procurement of maintenance services, repairs, and the supply of spare parts for armoured vehicles totalling RM107.54 million was carried out in small fragmented parts,' said Wan Suraya.
New Straits Times
01-07-2025
- Politics
- New Straits Times
Bung Moktar: Court case won't diminish support for me
KOTA KINABALU: The ongoing court case will not affect support for him, said Sabah Barisan Nasional chief Datuk Seri Bung Moktar Radin. "This case has been ongoing for almost six years, and I have won two elections while facing it," he told the New Straits Times. Bung's court case began on May 3, 2019, when he pleaded not guilty to three charges of accepting bribes amounting to RM2.8 million in return for approving Felcra's investment of RM150 million in Public Mutual unit trust funds. His wife, Datin Seri Zizie Izette, 45, also pleaded not guilty to three charges of abetting her husband in the matter at the same place, date and time. In May, the Court of Appeal ordered Bung Moktar and his wife to continue their defence in the graft case. Last week, he was reported to have dismissed rumours that he would step aside in the upcoming state election, adding that he would continue to defend his Lamag state assembly seat, which he has held since the 2020 state election. Bung Moktar any attempt to sideline him would jeopardise the party's revival in Sabah. "I am confident that the truth will ultimately prevail. "I don't see how my court case can affect the support for me," said the former state deputy chief minister, who has served as member of parliament for Kinabatangan since 1999. On grassroots support, Bung said that members have been wishing the best for their leaders, as Barisan Nasional has a track record of developing Sabah when in power. "In politics, it is almost impossible for any leader to gain 100 per cent support; however, grassroots acceptance of Umno-BN is steadily increasing."
