KUALA LUMPUR: The Public Accounts Committee (PAC) is set to summon two former Felcra Bhd chairmen, Datuk Seri Tajuddin Abdul Rahman and Datuk Bung Mokhtar Radin, this coming Monday.

The summonses are in connection with proceedings related to the Auditor General's Report concerning the government-linked company (GLC).

PAC chairman Datuk Mas Ermieyati Samsudin indicated that both former leaders would be required to provide explanations and information regarding the issues surrounding Felcra as reported in the Auditor General's report 2021 Series 2: Federal Government Company Management.

"PAC has already conducted three previous proceedings about Felcra Bhd on June 27, July 6, and August 23," she said.

During the June 27 hearing, PAC had summoned the Treasury secretary-general, the Rural and Regional Development Ministry's secretary-general, and Felcra Bhd chief executive officer to address concerns about the financial position of Felcra Bhd.

The financial position could not be ascertained due to unaudited financial statements for 2019, 2020, and 2021.

An audit review by the National Audit Department (NAD) revealed that Felcra had accumulated outstanding debts amounting to RM312.22 million in 2021, a significant increase from RM82 million in 2020.

According to the Auditor General's report 2021 Series 2, which relied on a confirmation letter from the Accountant General's Department dated Jan 10, 2022, Felcra's outstanding loans with the federal government as of Dec 31, 2021, reached a substantial RM3.67 billion.

This loan balance represents 69 per cent of Felcra's total liabilities, which stood at RM5.32 billion.

In response to Felcra's situation, the government approved converting a portion of the loan balance, amounting to RM969.27 million, into equity in Felcra through a decision in the Dewan Rakyat on Aug 4, 2022.

The Auditor General's report further highlighted that one of the key performance indicators (KPI) for Felcra fell short of its target in 2021.

Specifically, the cost reduction indicator in administrative expenses was not met due to additional spending of RM10 million for the People's Corporate Social Responsibility programme, which had not been budgeted for at the beginning of the year.

https://www.nst.com.my/news/crime-courts/2023/09/955369/pac-summon-former-felcra-bhd-chairmen-inquiry-monday