FGV Holdings Bhd (FGV) has clarified that the land leased to FGV under the Land Lease Agreement (LLA) between FGV and the Federal Land Development Authority (FELDA) specified that the assets involved are estates that do not include land cultivated by existing Felda settlers.
The LLA, which was signed on Nov 1, 2011, also does not include FGV’s palm oil mills.
“We wish to update that at the present moment, FELDA has yet to contact FGV regarding the LLA. FGV is prepared to follow the procedures outlined in the LLA, once we receive a notice from FELDA regarding this matter.
“We will make the relevant announcements at the appropriate time in the event of any material development on this matter,” FGV said in a statement today.
On Oct 20, it was reported that Felda had yet to contact FGV to negotiate on matters regarding the LLA. Previously, it was reported that Felda intended to reclaim some 350,000 hectares it had leased to FGV as a means to shore up its financial position.
Felda chairman Datuk Seri Idris Jusoh had said the matter had already been agreed upon by its board of directors and the agency was awaiting the government’s directive before negotiations can begin with FGV.
According to FGV, the LLA also stated that the amount payable to FELDA is RM248 million (based on the hectarage) plus 15 per cent of the operating profit from LLA land yearly.
However, since 2016, there was a decrease in the LLA fixed payment to FELDA due to adjustments in the hectarage leased.
“This decrease was due to several reasons, including land acquisition by FELDA, surrender of land to FELDA for the purpose of mining, encroachment on third party land, overlapping of mill land, as well as the reconciliation process between land title, and the Department of Survey and Mapping Malaysia (JUPEM),” it said.
Currently the size of FELDA land amounts to more than 850,000 hectares, and the land owned by FELDA settlers amounts to 450,632 hectares. FELDA-owned land that was leased to FGV amounts to 350,733 hectares.
Earlier this month, it was reported that to date, FGV’s responsibility towards FELDA amounting to RM248 million a year (according to the LLA) has been fully met and FGV has paid more than RM2.5 billion to FELDA from 2012 to 2019.