Mazlan Aliman shows reporters minutes from a Felda settlement panel meeting that he says provides proof of this.
A land rights group linked to PAS says it has evidence to show that the Federal Land Development Authority (Felda) borrowed RM6 billion from the Employees Provident Fund (EPF).

This, said Persatuan Anak Peneroka Felda Kebangsaan (Anak), is proof that Felda, a government-linked company (GLC), is facing financial woes.

Anak chairperson Mazlan Aliman (left in picture) today showed reporters what he claimed to be minutes of a meeting of the programme development committee of Felda Nitar 02, which exposed the huge loan.

Felda Nitar 02 is one of more than 300 Felda settlements nationwide. The programme development committee is a body set up in every settlement to manage and develop the locality.

According to the minutes, one of the issues discussed at the meeting on April 20 this year was an application to increase the living allowance of the settlers.

The document states that the application had been rejected by the national settler consultation committee because "Felda had borrowed RM6 billion from EPF for the development of settlers' lots".

Mazlan said: "We demand that (Deputy Minister in Prime Minister's Department) Ahmad Mazlan explains whether this is true. And, what is the purpose of the loan?"

A great burden on the settlers

Should the information be true, he said, it would be a great burden to the settlers.

"It will also show that Felda is facing a huge financial crisis, contrary to what Ahmad had claimed earlier," Mazlan added.

The dispute over Felda's financial status broke out last June when opposition parties alleged that Felda's reserves had declined by RM200 million from RM4.5 billion in 2004 as a result of irregularities.

Ahmad, who is in charge of Felda affairs, conceded in Parliament later that Felda's reserves had depleted from RM4.08 billion in 2004 to RM1.35 billion in 2009.

However, he rejected the charges of irregularities, saying that Felda's asset value had appreciated despite the drop in its reserves.

Dissatisfied with his answers, the opposition lodged reports with the police and the (then) Anti-Corruption Agency, demanding investigations into Felda's financial management.

On a related matter, Mazlan announced that a mammoth rally of Felda settlers would be held in Kerdau, Pahang, this weekend to consolidate the Anak movement.

Top opposition leaders, including PKR de facto leader Anwar Ibrahim and PAS president Abdul Hadi Awang, will attend the rally. - Malaysiakini