Latest news with #FelcraBerhad
The Star
5 days ago
- Business
- The Star
A-G's Report: PAC to call Rural Ministry, Felcra Berhad to explain
KUALA LUMPUR: The Public Accounts Committee (PAC) will summon the Rural and Regional Development Ministry and Felcra Berhad to provide clarification on the Management of Oil Palm Plantation Procurement by Felcra Berhad after hearing the Auditor-General's briefing on the Auditor-General's Report 2/2025 held on Thursday (July 24). PAC chairman Datuk Mas Ermieyati Samsudin said the PAC will also summon the Domestic Trade and Cost of Living MInistry to provide clarification on the Management of Price Controls and Cooking Oil Subsidies. In addition, the PAC also asked the Finance MInistry to hold a briefing on the governance of the Tender Procurement Committee. "For the PAC proceedings on issues in AG's Report 2/2025, PAC will focus on topics identified as having 3P elements, namely misappropriation, abuse of power and wastage, and 1K, namely leakage. "The date of the proceedings and briefing for the three related topics will be determined later,' she said in a statement on Thursday. On Wednesday (July 23), the Dewan Rakyat approved the motion on the Auditor General's Report 2/2025 on the Activities of Ministries/Departments/Statutory Bodies/Federal Government Companies, which contains matters raised as a result of the audit of five programmes, activities and projects in seven ministries. The motion tabled by Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said was approved with a majority of votes in agreement after being debated by 32 Members of Parliament. Meanwhile, Mas Ermieyati said the PAC will also present two Ministry Follow-up Action Statements on July 28 and 29 namely the PAC Statement on the Follow-up Action by the Ministry of Home Affairs for the Recommendations of the PAC Statement on the Procurement of the Foreign Workers Centralised Management System (FWCMS) (DR.4/2025). Another statement involved the PAC Statement on the Follow-up Action by the Ministry of Rural and Regional Development, the Sarawak Rural Water Supply Department and the Sabah State Water Department for the Recommendations of the PAC Statement on the Management of the Sarawak and Sabah Rural Water Supply Project (DR.3/2025).- Bernama
Malay Mail
5 days ago
- Business
- Malay Mail
PAC to summon Rural and Regional Development Ministry, Felcra over oil palm procurement issues
KUALA LUMPUR, July 24 — The Public Accounts Committee (PAC) will summon the Ministry of Rural and Regional Development (KKDW) and Felcra Berhad to provide clarification on the Management of Oil Palm Plantation Procurement by Felcra Berhad after hearing the Auditor General's briefing on the Auditor General's Report 2/2025 held today. PAC chairman Datuk Mas Ermieyati Samsudin said the PAC will also summon the Ministry of Domestic Trade and Cost of Living (KPDN) to provide clarification on the Management of Price Controls and Cooking Oil Subsidies. In addition, the PAC also asked the Ministry of Finance to hold a briefing on the governance of the Tender Procurement Committee. 'For the PAC proceedings on issues in AG's Report 2/2025, PAC will focus on topics identified as having 3P elements, namely misappropriation, abuse of power and wastage, and 1K, namely leakage. 'The date of the proceedings and briefing for the three related topics will be determined later,' she said in a statement today. Yesterday, the Dewan Rakyat approved the motion on the Auditor General's Report 2/2025 on the Activities of Ministries/Departments/Statutory Bodies/Federal Government Companies, which contains matters raised as a result of the audit of five programmes, activities and projects in seven ministries. The motion tabled by Minister in the Prime Minister's Department (Law and Institutional Reform) Datuk Seri Azalina Othman Said was approved with a majority of votes in agreement after being debated by 32 Members of Parliament. Meanwhile, Mas Ermieyati said the PAC will also present two Ministry Follow-up Action Statements on July 28 and 29 namely the PAC Statement on the Follow-up Action by the Ministry of Home Affairs for the Recommendations of the PAC Statement on the Procurement of the Foreign Workers Centralised Management System (FWCMS) (DR.4/2025). Another statement involved the PAC Statement on the Follow-up Action by the Ministry of Rural and Regional Development, the Sarawak Rural Water Supply Department and the Sabah State Water Department for the Recommendations of the PAC Statement on the Management of the Sarawak and Sabah Rural Water Supply Project (DR.3/2025). — Bernama
The Star
22-07-2025
- Business
- The Star
Governance slip found in Felcra's RM241mil plantation acquisitions
PETALING JAYA: The Auditor-General's Report 2/2025 found governance weaknesses in the implementation of leasing procurements for Felcra Berhad involving one oil palm plantation in Sandakan, Sabah, and three in Gua Musang, Kelantan, with acquisitions worth RM241.76mil from 2022 to 2024. 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.
Malaysiakini
21-07-2025
- Business
- Malaysiakini
Serious irregularities found in three audits
Serious irregularities identified in three audits were detailed in the 2025 Auditor-General's Report Series 2, which was tabled in the Dewan Rakyat today. Auditor-General Wan Suraya Wan 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...
The Star
21-07-2025
- Business
- The Star
Felcra went ahead with RM62.3mil plantation buy despite poor feasibility study result, says AG Report
PETALING JAYA: Felcra Bhd went ahead with the RM62.29mil purchase of the Telupid palm oil estate despite a feasibility study concluding that the land was not economically viable due to poor soil and uneven terrain, according to the Auditor-General's Report 2/2025. The report stated 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 palm oil plantation estate was not economically viable," said the report, which was released Monday (July 21). The board of directors had agreed to defer the purchase and to issue a request for proposal (RFP) 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. The audit review also found that the board of directors' Meeting No. 203 in 2022 did not make any decision on appointing external consultants to carry out the feasibility study. "There was no evidence of discussion on the appointment of external consultants in that meeting, and no resolution was tabled to the board to amend the decision made at an earlier board meeting (Meeting No. 202)," the report added. "This was due to the company secretary, who acted as the meeting secretariat, not recording the matter in the minutes. "However, the board of directors proceeded to approve the purchase of the oil palm plantation 22 days later during Meeting No. 203, despite some members of Felcra Berhad's board disagreeing with the acquisition and requesting the appointment of external consultants to conduct a new feasibility study. "There was also no evidence that proper action was taken on concerns raised by board members before the acquisition decision was finalised. "Subsequently, Felcra Berhad took 51 days to sign the agreement with the seller," the report stated. 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. "The Environmental Impact Assessment (EIA) report was approved by the Sabah Environmental Protection Department on Jan 23, 2025," it said. Following this 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 215 hectares under Phase 1. "This work is expected to begin in May 2025 and will be coordinated with the proposed EIA monitoring and compliance measures," it said. Felcra Berhad also said it had taken steps to increase income and control expenditure to ensure the estate would generate profit following recovery efforts. "This is reflected by the reduction in losses from RM2.49mil in 2022 to a recorded profit of RM110,000 as of February 2025," it said.
