Felda’s compensation to be less than what FGV expects – STF Chairman

by BERNAMA / pic by TMR FILE

FELDA’s compensation to FGV Holdings Bhd following the termination of a land lease agreement (LLA) related to its estates will be less than the RM3.5 billion – RM4.3 billion anticipated by the company.

Chairman of the special task force (STF) set up to address Felda issues, Tan Sri Abdul Wahid Omar (picture) today said the matter would be deliberated further with FGV’s inclusion.

“Felda will likely pay less than what FGV expects following the termination of the LLA,” he said at a media briefing here, in regard to a statement by FGV yesterday on the amount of compensation it expected to get.

He said Felda will also be buying over FGV’s palm oil mill assets.

The LLA refers to Felda-owned estates totalling 350,733 hectares that were leased to FGV for 99 years from Nov 1, 2011.

On Wednesday, Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed said in a statement that the termination of the LLA and issuance of sukuk worth RM9.9 billion by Felda were some of the proposals approved by the Cabinet to ensure its recovery.