Participants want Felcra unit to stop managing estates

SIBU: Participants of Federal Land Consolidation and Rehabilitation Authority ( Felcra) schemes in Sibu, Matu, Metading, Mukah and Balingian are protesting against Syarikat Felcra Urus Estate Sdn Bhd (FUESB), which manages the estates in these areas.

FUESB is a subsidiary of Felcra – now known as Felcra Bhd.

According to a press statement issued by the project development committee members (AJKKP) of the areas, Felcra has mismanaged these estates – resulting in losses, and the participants are now saddled with debt.

AJKKP claimed that since FUESB took over the management in June 2014, the participating estates had been suffering losses everyyearduetoover-expenditures as management cost spiked. It also pointed out that under Felcra, the standard cost of pruning works on a tree was RM0.50; under FUESB, however, the cost had increased to RM1.30.

Additionally, fertilising works under FUESB were RM44.40 per hectare – higher than the RM12 per hectare under Felcra.

AJKKP said the scheme participants also complained about FUESB charging them 30 per cent from the estates’ net profit.

Citing 2013 as an example, they said the deduction of 30 per cent

Until now, unfortunately, Felcra has not forwarded any proof – in black and white – the types of expenditures that ‘have been forgotten’, despite repeated requests from the participants. Press statement by project development committee members (AJKKP)

from the overall distribution of dividends was RM3,679,672.87.

“However, the participants disagreed with the deduction as it was not documented in the agreement,” said AJKKP.

“The compulsory deductions in accordance with the agreement were the marketing service charge of one per cent from gross profit, seven per cent management charge from gross profit, re-planting fund deduction of RM40 per acre, and loan repayment of 20 per cent from the gross profit.”

AJKKP said the reason behind the 30-per cent deduction off the project’s net profit was to cover the expenditure of estates, of which payments had been ‘ forgotten’ such as the usage of fertilisers and insecticides.

“Until now, unfortunately, Felcra has not forwarded any proof – in black and white – the types of expenditures that ‘ have been forgotten’, despite repeated requests from the participants.”

AJKKP also said the financial statement did not follow the actual financial procedures, which made the participants ‘greatly disappointed’.

It is learnt that state Felcra financial officer admitted this matter the during a meeting with the participants in Kuching on June 18, 2014.

The AJKKP said the distribution of the participants’ dividends, which should have been three times a year, had been reduced to two times a year.

It is also reported that lately, the dividends did not reach some of the large estate participants due to the estates’ losses.

“In this connection, the AJKP Felcra for Sibu, Matu, Metading, Mukah and Balingian areas are urging Felcra Bhd to stop FUESB immediately from managing all the participating estates in Sarawak; on the other hand, we urge (the estates) to be re-managed by Felcra Bhd as stipulated under the agreement.

“Moreover, the 30 per cent deduction off the estates’ net profits undertaken since their production, should be paid back to the participants in Sarawak immediately.”

The AJKKP also called for the financial statement of Felcra Sarawak be audited by the Auditor- General of Malaysia as soon as possible.