‘FGV didn’t incur RM2b operations loss’
KUALA LUMPUR: Felda Global Ventures Holdings Sdn Bhd (FGV) is not experiencing a RM2 billion loss from its operations, said Deputy Minister in the Prime Minister’s Department Datuk Razali Ibrahim.
He said FGV recorded losses only as a result of its falling share prices.
He noted that the government had raised RM6 billion from the sale of its 66.33 per cent stake in FGV’s listing a few years ago.
“Of the RM6 billion, RM4 billion was spent on Felda settlers,” he said.
Razali added that the government had received RM581 million in dividends from FGV from June 2012 to this year.
“If FGV is making losses, how can it give out dividends?”
This year, FGV gave dividends to Felda, which owns a 33 per cent stake in the company.
This is in addition to a 15 per cent annual profit from FGV’s production as well as other financial commitments made by FGV to Felda
Razali said when FGV shares rose, Felda could not take the profit. The 33 per cent holdings could not be released at the time because the government had leased 350,000 hectares to FGV, apart from giving it 72 processing factories.
Razali was replying to an additional question by Anuar Manap (BN-Sekijang) on the losses faced by FGV in its investments, and the negative impact they had on FGV and Felda subsidiaries.
The government raised RM6 billion from the sale of its stake in FGV’s listing exercise a few years ago, and spent RM4 billion for the benefit of settlers.