‘Assuming it sold all the 6.8 percent it bought at half the purchased price, EPF lost RM500 million…’
Ramesh Rajaratnam: The Employment Provident Fund (EPF) invested about RM1.2 billion in Felda Global Ventures’ (FGV) initial public offering (IPO) in 2012 and loaned the group RM6.5 billion since then.
Assuming it sold all the 6.8 percent it bought at half the purchased price, EPF lost RM500 million, plus minus. That excludes the RM6.5 billion loan exposure (even though government guaranteed the loan, the end payer of a default is still the rakyat).
Take a good look. EPF lost our money by investing in FGV. I’m not a lawyer but common sense says somebody ought to be held financially accountable to the contributors?
It’s different for the shareholders of FGV, they can take it up with the management. We have to ask some serious questions on the retirement fund’s competency and transparency.
Anonymous_1424794168: The government is suffering from a major trust deficit. If you privatise FGV now, the trust deficit will only increase.
You are better off tightening all the loose screws in FGV. That will bring more confidence to the government.
Hornbill: So what happens to previous Felda chairperson Isa Samad? Any action taken against him for the failure?
Oh, I forgot, it isn’t in our culture to punish ‘genuine failures’. Even criminal negligence could also go unnoticed.
Worldly Wise: The government ought not to do business. When government does business, you get an artificial result. The capital put in is not a reflection of the people’s ability to invest.
Politicians will consider the political advantage to them in making business decisions although they purport to do so in the interests of the public at large. The actual business of governing in all likelihood will be either neglected or distorted.
Clever Voter: The moment you leave anything to politicians, this is exactly the possible outcome. A majority of them have never earned anything in their life, let alone understand the value of money.
To them, it’s only numbers. After all, spending other people’s money is what they know best.
Once again, the losers are individuals and those who laughed all the way to the bank are bankers, politicians and possibly their runners.
Dont Just Talk: With all the lucrative promises made to the Felda settlers to list FGV at an IPO price of RM4.55 in 2012, and less than five years, the talk is now about taking Felda private when the market price is RM1.79.
Indeed, the federal government under MO1 (Malaysian Official 1) never fails to learn that it is bad to mix business with politics.
And with (monkey) politicians being appointed to take care of the (banana) plantation, the result is clear.
How much trust and confidence can investors have in our country, with one financial scandals after another, and yet Second Finance Minister Johari Abdul Ghani remains optimistic that our ringgit will strengthen against US dollar in the near future?
Drngsc: FGV, four years ‘koyak’ (gone). 1MDB, five years ‘koyak’. That is how Umno takes care of their assets. They ‘piratise’ them.
Dont Just Talk: Can new Felda chairperson Shahrir Samad explain to Malaysians the rationale behind the RM1 billion loan taken from Singapore Putra Star Investment Company when the company paid-up capital is US$1 million.
Pandan MP Rafizi Ramli talked sense when he asked what collateral did Felda offer for the loan.
With the plan acquisition of Eagle High Plantations, what is Felda total borrowing and can Felda service the loan plus interest?
Was that the reason EPF has decided to liquidate all its Felda shares, incurring millions of losses in the process.
Mushiro: Did the Felda board approve taking a loan from Singapore. And that too from a non-finance company, Putra Star. What are the terms and what are the collateral?
Felda lost billions of ringgit in its core business, which is plantations. And now they are venturing into deal with Putra Star to fund the Felda New Generation Housing Programme.
There should be a limit to deliberate blunders.
Fair&Just: Now, the most very important things are the terms of the loan. Rafizi is correct in wanting to know what the terms are.
Will the terms be the selling off of land again or the rakyat will have to pay through their nose to settle these debts, on top of the 1MDB debts?
Worldly Wise: Singapore tolerates corruption outside their borders. Singapore must make it an offence for Singaporeans to engage in graft outside Singapore.
Japan has such laws. Singapore has a social responsibility to people outside Singapore. This will safeguard Singapore’s long-term interests.
The Felda settlers should rebel and revolt against what is being done to them, their land and their livelihood. It is another scam where the winners are Umno and the losers are Malaysians.