MACC proposes governance improvements for Felda, 2 subsidiaries

The Malaysian Anti-Corruption Commission (MACC) has suggested governance enhancements for Felda, a major plantation company, as well as two of its subsidiaries to bolster the management of two initiatives. These recommendations, proposed by the MACC BPT's governance investigation division on Monday, aim to bolster the execution of an agro park project and a cattle trading pilot project.

One of the suggestions for Felda is to restructure the role of FIC Integrated Property Management's (FIC IPM) independent advisory panel. This restructuring is intended to ensure that all advice provided is objective, transparent, and devoid of any conflicts of interest.

Moreover, MACC BPT has recommended that Felda enhance its procurement and transaction management processes by establishing specific Standard Operating Procedures (SOPs) for procurement involving requests for proposal and variation orders. This move is crucial to ensure that these processes are executed consistently, systematically, and transparently, in accordance with established regulations and internal controls.

Additionally, the recommendations encompass refining the existing procedures for FIC Supplies Sdn Bhd's sales and purchase activities. The goal is to strengthen controls and governance in the company's transactions.

Felda and its subsidiaries have welcomed these recommendations and have pledged to implement them gradually. The commitment to adopt the recommendations was formalized through a governance improvement report signed by Fitri Othman, Felda's deputy director-general (corporate services); Syed Fadil Syed Sofi, CEO of FIC Group; and Zaki Hassan, director of MACC BPT.

In July, Prime Minister Anwar Ibrahim had stated that Felda was experiencing losses of nearly RM10 billion due to mismanagement and excessive political interference. He revealed that he had received reports indicating the company's debt burden, which compelled the government to bear a significant financial responsibility each year.

Separately, a former Felda general manager has been charged with misleading the agency's board of directors regarding the transfer of ownership for 16 parcels of Felda land in Jalan Semarak, Kuala Lumpur, back in 2014. Furthermore, a former CEO of a Felda investment unit has been charged with misleading the company's board of directors concerning the project's value and the appointment of its master developer.