MACC proposes governance changes for two Felda projects amid corruption probes
The Malaysian Anti-Corruption Commission has proposed procurement and advisory changes for two Felda projects, including the Agro Park (Commercial) Project and Cattle Trading Pilot Project. Felda and its subsidiaries have agreed to implement the recommendations, which come amid separate MACC investi
PETALING JAYA (Oct 1): The Malaysian Anti-Corruption Commission (MACC) has proposed changes to procurement, transaction controls and the advisory structure governing two Federal Land Development Authority (Felda) projects.
The recommendations cover the Agro Park (Commercial) Project and Cattle Trading Pilot Project, and involve Felda subsidiaries FIC Supplies Sdn Bhd and FIC Integrated Property Management (FIC IPM), MACC said in a statement on Wednesday (Sept 30).
Among the proposals is the restructuring of FIC IPM's role as an independent advisory panel to ensure that its views and advice are objective, transparent and free from conflicts of interest. MACC's Governance Investigation Division also recommended that Felda strengthen its procurement and transaction management procedures by establishing specific standard operating procedures for procurement involving requests for proposal and variation orders.
The commission said the measures were intended to ensure that the processes are carried out consistently, systematically and transparently, in accordance with established regulations and internal controls. It also proposed improvements to existing procedures governing FIC Supplies' sales and purchase activities to strengthen controls and governance over the subsidiary's transactions.
The recommendations were presented by MACC Governance Investigation Division deputy director I Maznah Che Muda at Menara Felda on Monday (Sept 28). Felda and its subsidiaries welcomed the proposals and committed to implementing them in stages. Their agreement to adopt the recommendations was formalised through a Governance Improvement Report.
The recommendations come amid separate MACC investigations into Felda and Felda Investment Corporation Sdn Bhd (FIC). In September, MACC said it had opened six new investigation papers following information received on Aug 24 concerning projects and investments undertaken by Felda and FIC between 2010 and 2020. The investigations involve suspected misappropriation, abuse of power and corruption relating to asset purchases and investments, including alleged irregularities involving the Kuala Lumpur Vertical City (KLVC) development.
Two former senior officials have since been charged in connection with the KLVC investigation. Former FIC CEO Mohd Zaid Abdul Jalil pleaded not guilty on Tuesday (Sept 29) to two charges of deceiving FIC's board. The charges concern alleged representations over Synergy Promenade Sdn Bhd's eligibility to be appointed master developer for a commercial development in Jalan Semarak and the valuation of 24 Felda-owned land parcels. On Wednesday (Sept 30), former Felda director-general Datuk Faizoull Ahmad pleaded not guilty to a charge of deceiving Felda's board by allegedly concealing facts concerning a power of attorney granted to Synergy Promenade in 2014 involving the transfer of 16 Felda land parcels in Kuala Lumpur and Setapak.
