Deputy Minister in the Prime Minister’s Department Datuk Ahmad Maslan, however, told the Dewan Rakyat that the drop in cash reserve was not due to mismanagement of the scheme.
“We did not abuse the funds,” Ahmad told the Dewan Rakyat, adding that the money was spent appropriately.
He told a press conference later the funds were spent for various projects for the scheme.
“The RM2 billion was used for replanting, revenue deposit and cost of living support for settlers. A total of RM603 million was spent on interest-free housing loan while RM253 million was allocated as special funds to eradicate poverty in Sabah.
Another RM662 million was spent on the purchase of the 50 storey Menara Felda,” he said.
He added that despite the drop Felda’s assets has increased.
“The cash reserves went down RM2.37 billion while the assets has gone up by RM6.2billion.” The Pontian MP was replying to a question by Ledang MP Hamim Samuri who asked him to explain what he described as “internet lies” alleging mismanagement in the land development authority.
Hamim was referring to an open letter by former deputy minister of land and cooperatives, Datuk Tan Kee Kwong, who accused Datuk Seri Najib Razak of bankrupting Felda.
Tan, who is an active PKR member, had alleged that Felda’s cash reserve was around RM4.5 billion in 2004, but has dropped to RM200 million.
