‘FGV didn’t in­cur RM2b op­er­a­tions loss’

New Straits Times - - News -

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.

FILE PIC

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.

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