Felda lost millions due to poor planning, says report

KUALA LUMPUR: The Felda Land Development Authority lost millions of ringgit due to poor planning and execution of projects.

These include procurement of the Light Detection and Ranging (LiDAR) data collection services for replanting programmes, implementation of a broadband project and three other ventures.

The 2015 Auditor-General’s Report (Series 2) said the audit carried out between January and June this year, revealed that the planning, implementation, monitoring and management of projects by Felda and its subsidiaries were unsatisfactory, while not meeting the stipulated objectives.

Among others, it said 65 contracts for the procurement of LiDAR services worth RM148.42mil were signed by the director of the Department of Land Management without proper authorisation.

In addition, the terms of all contracts signed by Felda with Bumitouch Sdn Bhd and Skyline Access Sdn Bhd for the LiDAR services were incomplete, and important clauses not included to safeguard its interest.

The report stated that the full payment of RM40.57mil for 53 out of 64 contracts with Bumitouch Sdn Bhd were made, although the deliverables of LiDAR were not fully received.

It said the LiDAR data collection by Bumitouch from 2013 to 2015 was already carried out.

However, the use of LiDAR technology for replanting could not commence, as the deliverables for the period October 2013 to May 2015 for the related areas, were not fully received.

As for the implementation of the Broadband Project, which cost RM566mil, the report said it was only completed up to the preparation of blueprint worth RM40mil.

“The pilot and full roll-out project had been suspended since Jan 29, 2015,” said the report.

It also said that there was no feasibility study and due diligence undertaken by Felda prior to the Sturgeon Fish Farming, Savaro Restaurant and Schneeballen Pastries projects, to determine need and location, as well as technological capabilities, leading the agency to suffer RM73.63mil in losses.

Meanwhile, the LED and solar light project that illuminates a stretch from Taman Lagenda to Dataran Lang in Langkawi fell into disrepair two years after it was completed at a cost of RM470,000.

The light project, which also includes a Musical Light Show, was intended to be a tourist attraction besides boosting security.

“Now that it is broken, it has failed to achieve that objective.”

In its response, the Langkawi Development Authority attributed the weaknesses to lack of funds and weather.