MELAKA, Oct 12 — The Federal Land Development Authority’s (Felda) assets exceeds its liabilities, hence the allegation that it is on the brink of bankruptcy, prompting its London property sale was uncalled for.
Its Chairman, Tan Sri Shahrir Abdul Samad said bankruptcy would occur when one’s assets were worth less than liabilities, hence not enough to pay the debts, but in the case Felda it was the opposite.
“When we have a surplus we convert it to bank savings or buy fixed assets. So, with fixed assets we sell part of them to solve cash flows, no point keeping a lot of properties and not selling them,” he told reporters after a gathering organised by the Felda Malaysia Youth Council here today.
Felda is putting the Grand Plaza Serviced Apartments in London for sale as part of its initiatives to reorganise and restructure its assets in order to strengthen its financial position.
Shahrir said Felda plunged into debts last year and the agency needed to find ways to get out the quandary through internal resources by diluting its assets, but it would not affect its function and responsibility as they were not its core business.
“If the London hotel sale can affect the welfare and prosperity of Felda settlers, we will not do it. Now we are going back to our original responsibility, our core business, the hotel is not our responsibility and core business,” he said.
On Felda Global Venture Bhd (FGV) President and Chief Executive Officer Datuk Zakaria Arshad resuming his duties on Monday, Shahrir said he was confident of Zakaria’s ability.
He said Zakaria and FGV Chairman Datuk Azhar Abdul Hamid were able to team up to steer the Felda subsidiary to become a competitive business entity.
“I am confident that the duo will be able to take FGV to greater heights. FGV is like a ‘child’, while Felda like ‘a father’ will certainly entrusted this entity to grow and succeed in business for Felda’s advancement,” he said.
Zakaria was given leave of absence in June pending a probe of certain deals under Delima Oil Products Sdn Bhd, which is a subsidiary of FGV. — Bernama