Several initiatives and incentives to improve the quality of life and preserve the welfare of Federal Land Development Authority (Felda) settlers announced by Prime Minister Datuk Seri Anwar Ibrahim recently, reflect the sincerity of the MADANI Unity government in helping Felda and its settlers.
National Felda Settlers head Sulong Jamil Mohamed Shariff said the Unity Government's move to help Felda with an allocation of RM1 billion a year to pay Felda's loan principal through a RM9.9 billion Sukuk, also eased the financial burden borne by the agency.
"When this happens, Felda can breathe a sigh of relief and only needs to get sources of income including from Land Lease Agreements (LLA), factories and so on to get more than RM1 billion in income.
"With this income, Felda can pay staff salaries, bank interest, settlers' replanting advances, fertilizer advances, subsistence and other activities that involve the settlers' welfare.
"Perhaps within 8 years, Felda will be able to run as usual and return to the original track of its establishment," he said in a statement here today.
According to Sulong Jamil, even though Felda had previously agreed to cancel the settler's debts until 2019 through the deduction method, the cancellation would cause Felda to lose a source of income to pay debts to banks and the Employees' Provident Fund (EPF).
"I myself along with Tan Sri Idris Jusoh (Felda chairman at the time) ... and representatives of Felda management met Tan Sri Muhyiddin at the Prime Minister's office in Parliament.
"The government at that time had agreed to issue RM9.9 billion in sukuk with a government guarantee. In the explanation YAB Prime Minister (at that time) repeatedly said remember...this is not free, you have to pay back...," he said.
According to Sulong Jamil, after the finance was obtained from the banks, Felda has paid all its debts including for Felda to buy FGV shares which allows the agency to control 82 per cent of the company's shares at the moment.
"Whether the government has signed an agreement with Felda on how this sukuk should be paid, we have not been informed and until the end of 2022, it is still like waiting for fruit that does not fall," he said.
Anwar previously refuted former Muhyiddin's statement accusing him of lying about the settlement of Felda settlers' debt when he, as Minister of Finance, had just signed the approval of the settlement of the debt at the end of last month.
The prime minister reportedly said that although there was agreement from the previous government, it was never implemented.
The government on July 9 approved a guarantee of up to RM9.9 billion for Felda to issue sukuk to complete the settlement of settler debt by channeling an allocation of RM1 billion per year as part of the agency's recovery plan.
Source: BERNAMA News Agency