Speech by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, in Dewan Rakyat on the Second 1994 Supplementary Supply and Development Estimates on Monday, 11th July 1994
DAP calls for immediate suspension of the Director-General of FELCRA Mustapha bin Juman and overhaul of the top management of FELCRA for corruption, misappropriation of funds and gross mismanagement
Bulam lalu, Harian Metro melapurkan bahawa Badan Pencegah Rasuah (BPR) Selangor menahan dua pegawai FELCRA – berhubung skandal penyelewengan dan pemalsuan dokumen bayaran projek pembinaan jalan pertanian membabitkan wang berjumlah RM8 juta.
Dua lagi pegawai kanan Koperasi Peserta-Peserta Felcra Sdn. Bhd. turut ditahan kerana dipercayai terbabit dalam skandal penyelewengan dan pemalsuan dokumen terbabit.
Felcra negeri Selangor hanya boleh menawarkan tender tidak melebihi RM1 juta setahun untuk projek pemnbinaan jalan, sedangkan dalam tempoh tiga tahun sebanyak RM12 juta sudah ditawarkan.
Felcra negeri Selangor menyerahkan beratus-ratus tender membina jalan pertanian di Selangor kepada Koperasi Peserta-Peserta Felcra Sdn. Bhd. membabitkan nilai kontrak sebanyak RM12 juta diantara 1992 dan awal tahun ini.
Bagaimanapun, tender-tender yang diperolehi oleh koperasi itu diserahkan kepada sebuah syarikat sahaja untuk melaksanakan projek berkenaan.
Sehingga ini dianggarkan RM8 juta sudah dijelaskan oleh Felcra negeri kepada koperasi. Koperasi hanya mengambil keuntungan dua peratus daripada bayaran projek itu dan selebihnya dibayar kepada syarikay terbabit yang dimiliki oleh seorang bernama Rizal Abdullah.
Walaupun terdapat rungutan mengenai kerja yang dilaksanakan oleh syarikat itu, Felcra tetap membuat bayaran sepenuhnya.
Semua projek itu juga menyalahi peraturan tender Felcra negeri kerana setiap peojek dipecahkan kepada beberapa tender setiap satu tidah melebihi RM50,000.
Mengikut peraturan tender, Felcra negeri Selangor hanya dibenarkan membuka tender bernilai tidak melebihi RM50,000 manakala nilai tender yang lebih daripada harga itu perlu dikemukakan ke Ibu Pejabat Felcra.
Penyelewengan-penyelewengan berpuluh-puluh juta ringgit fi Felcra tidak dihadkan ke Negeri Selangor sahaja tetapi membabitkan negeri-negeri tang lain termasuk Pahang.
Penyelewengan di Pahang lebih kepada ‘letak harga gila’ bagi beberapa projek yang dimonopoli oleh orang tertentu yang mempunyai kaitan dengan Koperasi Peserta-Peserta Felcra Sdn. Bhd. dan Felcra sendiri.
Beberapa projek yang tersendiri sebagai projek ‘letak harga gila’ itu ialah pembinaan sebatang tiang bendera di Sungai Kambang, Lipis bernilai RM99,000.
Harga yang dikenakan itu adalah terlalu tinggi tetpi tidak pernah mendapat bantahan, sebaliknya diterima dan bayaran untuk projek itu dilunaskan tanpa sebarang halangan.
Selain itu, satu lagi projek yang tersenarai ‘letak harga gila’ ialah projek membina tembok untuk mencuci kenderaan yang bernilai RM99,000 juga – yang sebenarnya boleh dibina dengan harga kurang daripada RM3,000.
Rancangan Kg. Bukit Changgang II di Banting ialah satu contoh yang baik dimana projek bernilai RM500,000 itu dipecahkan kepada 17 bagi membolehkan setiap tender dibuka dengan nilai tidak lebih RM50,000 untuk mengelak peraturan bahawa untuk negeri Selangor, hanya Ibu Pejabat Felcra berhak membuka tender projek yang bernilai lebih RM50,000. Daripada 17 item ini, tujuh item adalah melbihi RM49,000, semacam ‘menaiki taraf jalan’ yang dipecahkan kepada dua item, satu bernilai RM49,276 dan yang lain bernilai RM49,580 – dan kedua-dua di bayar di Mach 1993.
In fact, I understand that there are 97 projects in the various states worth RM4 million where virtually no work had been done, although the various State Felcras had paid out the monies.
I do not believe that the Director-General of Felcra, Dato’ Mustapha bin Juman, who had held this post since 1982, and the Deputy Director-General, Haji Abdul Wahid bin Haji Azahari, who joined FELCRA in 1983 are unaware of these hanky-panky in the various state FELCRAs.
This is why I agree with the ACA in not approving the optional retirement of Haji Abdul Wahid until the completion of ACA investigations.
I am also very surprised that the such hanky-panky should escape the watchful eye of the Auditor-General, Tan Sri Ishak Tadin.
There have indeed been massive financial improprieties and irregularities in the entire FELCRA operation.
As end of last year, FELCRA had overspent RM142 million in 392 projects involving an estimated 28,000 settlers
As until December 1993, FELCRA had overspent RM142 million in 392 projects involving an estimated 28,000 settlers. This had greatly increased the average cost of land consolidation and rehabilitation would be around RM7,500 per hectare, but in actual practice, the cost of development per hectare had reached as high as between RM15,000 to RM20,000 per hectare.
Out of the 392 Felcra projects which had overspent a total of RM142 million, there were 35 schemes which had overspent by over a million ringgit each, with the 11 schemes overspending by over RM2 million ringgit, namely:
1. Sebarang Perak I (Lot) RM2,394.932
2. Sebarang Perak VI (10A) RM2,794.126
3. Sebarang Perak XIV (12) RM2,129.937
4. Pahang Tenggara I (Belia) RM2,392.967
5. Kerangai / Penagoh RM2,491.542
6. Sri Mahkota I (Endau Mersing) RM2,111.206
7. Batu 3 ½ Paloh RM2,028.669
8. In-situ Brang /Kg. Betong RM2,733.267
9. Panggang Lalat I (Belia) RM4,901.770
10. In-situ Teratak Batu RM3,176.908
11. Kuala betis (RPS) RM2,055.126
What deserves serious attention is that there are Felcra projects which overspent as high as 300 per cent of their original estimated cost.
The Panggong Lalat I (Belia) project is one example. Its original cost was RM1,795,300 but total expenditures ended up in RM6,697.070. The original cost of the In-situ Teratak Batu project was RM1,279,910 but total expenditure ended up in RM4,456,818.
It is clear that the concept of budget control is completely alien to FELCRA Director-General and the top management for over a decade.
The important questions are what are the reasons for the colossal over-expenditures, who approved them, whether the Felcra settlers have agreed as it would mean higher interest amounts and high loan repayments by the Felcra settlers and how are these over-expenditures to be financed.
The Felcra management may give the excuses that the projects were located in isolated places which make them difficult to develop, that the crops were destroyed by wild animals and storms, and that the areas developed were much bigger the originally planned.
These are all week and unacceptable excuses, as an efficient FELCRA management would contingency plans for projects in isolated places. In the cash flow analysis, these contingency plans should have been highlighted and if the cost of development prove prohibitive, the project should have been abandoned.
Furthermore, the replanting of crops due to destruction by wild animals and storms should be covered by insurance schemes taken by each project, and not from new development funds.
FELCRA has over-collected RM162 million for 555 projects involving 35,000 settlers
There is another financial Felcra scandal directly affecting the financial interests of the FELCRA settlers. The Federal Government gives allocations to FELCRA for consolidation and rehabilitation of land on the basis of 10 years of development followed by 15 years of repayment.
However, FELCRA has started collecting loan repayments through deductions by the fifth years. As at the end of December 1993, Felcra had over-collected RM162 million for 555 projects involving 35,000 settlers.
What is most shocking is that the 35,000 Felcra settlers are not aware that FELCRA had over-deducted from their loan repayments.
In 43 out of the 555 projects involved, FELCRA had over-collected or over-deducted as loan repayments exceed RM1 million.
There are six projects where Felcra had over-collected or over-deducted by over RM3 million, namely:
1. Sebarang Perak 4(V) RM3,419,974
2. Sebarang Perak VI (10A) RM3,101,048
3. Sebarang Perak XI (6) RM3,024,778
4. Sebarang Perak XIII (13) RM3,746,096
5. Bukit Serdang RM3,155,217
6. Kundang Ulu I RM3,105,921
There are three projects where Felcra had over-collected or over-deducted by over RM4 million, namely:
1. NASARUDDIN MR II (Belia) RM4,386,269
2. KG. BOHOR BAHARU I, Pahang RM4,592,904
3. NASARUDDIN MR V (BELIA) RM4,621,510
In the case of Nasaruddin MR II (Belia) project, FELCRA had deducted as loan repayment RM5,796,287 million from the settlers but had only paid to the Government RM1,410,019, keeping RM4,386,269 in Felcra. In the case of Kg. Bohor Bahru I. Pahang project, Felcra had deducted RM5,206,243 from the settlers, paid the Federal Government RM613,339, and keeping RM4,592,904. In the case of Nasaruddin MR V (Belia) project, Felcra had deducted RM5,490,618, paid the Federal Government RM869,107, and Felcra retaining RM4,621,510.
I have a whole list of the overdeductions which Felcra had made from the 555 projects, totaling RM162 million involving 35,000 settlers, but I do not think it is necessary for me to read out the whole list in the House. If any Minister is interested, I am prepared to give him the whole list.
I understand that the loan agreement which FELCRA settlers had entered into with FELCRA is completely one-sided allowing the FELCRA Management to do what it likes – to the extent that it could over-deduct RM162 million from loan repayments of 35,000 settlers.
How an FELCRA justify collecting earlier loan repayments without the consent or even knowledge of the FELCRA settlers to the true of RM162 million?
This is day-light robbery of the RM162 million which belong to the 35,000 settlers and DAP calls on FELCRA to immediate refund the RM162 million to the 35,000 settlers.