KUALA LUMPUR: The Federal Land Development Authority losses doubled to RM1 billion, almost twice the RM545 million losses reported in the previous year.
According to the 2022 auditor-general’s report, Felda’s external debt stood at RM8.66 billion in 2022, slightly lower than the RM8.8 billion owed in the preceding year.
The agency has recommended that Felda establish a clear path to operate independently, without relying on additional financial support from Putrajaya.
It pointed out that Felda has been heavily reliant on financial assistance from the federal government, receiving RM200 million in grants in 2022, a decrease from the RM342 million received in 2021.
“The reduction in grants received by Felda affected its operational sustainability,” the report noted.
Further, the auditor-general’s report also suggested that Felda closely monitor its subsidiary companies to ensure their self-sustainability and the ability to yield profits for the company without relying on the parent company.
Felda has group-level loans, including a RM2.5 billion tawarruq financing facility agreement with GovCo Holdings Bhd.
The report highlighted that FIC Properties Sdn Bhd failed to repay the loan, leading Felda to enter into a new agreement with GovCo as a corporate guarantor for the tawarruq financing facility agreement.
Furthermore, PR1MA Malaysia reported a loss of RM257 million in 2022 and is facing challenges in repaying a RM1.75 billion Islamic medium-term note loan due in October 2024, with only RM428 million in cash by the end of 2022.
The report recommended that PR1MA ensure cash projections from unit sales fund operational activities and facilitate the repayment of sukuk tranche 2.
The report highlighted that the Armed Forces Fund Board (LTAT) had not accounted for impairments for investments in 13 subsidiaries, including Boustead Holdings Bhd (BHB) and Pharmaniaga Bhd, resulting in an overstatement of net profit and investment in subsidiaries by RM0.812 billion.
LTAT has been in a negative reserve balance since 2020, with unrealised losses of RM0.662 billion from 41 old share portfolios.
The auditor-general advised LTAT to restructure its investment strategies, enhance governance in investment management, and ensure dividend declarations are based on realized gains to maintain payout ability to eligible contributors.
Additionally, the report highlighted that four federal agencies have not yet submitted their financial statements for the year 2022.
