The Malaysian Insight

NAJIB Razak has dared Pakatan Harapan (PH) to reveal details of Felda’s purchase of a 37% stake in Indonesian firm Eagle High Plantation (EHP).

It was reported today that Felda has lodged a police report over the deal, which the land agency said caused it to suffer huge losses.

The former prime minister said the 2016 purchase was not damaging to Felda, as alleged by PH, due to the “put option” in the deal.  

“The purchase was complete with a put option, which allows us to sell back 37% equity at the original price along with annual interest charge of 6% covered by the Indonesian seller.

“In other words, if we decide not to continue with the investment, we can demand back the money used in the acquisition along with the 6% annual interest,” he said in a Facebook post today.

Najib said he had anticipated in February that PH would use the issue to attack him and urged the government to disclose the deal’s details, but Putrajaya kept silent.

“Please stop cheating the people by playing up propaganda against me,” said Najib, while demanding that Putrajaya admit that Felda’s financial problems is due to palm oil prices dipping below production costs after the 14GE.

He said although the loan to buy the EHP stake was derived from bonds with a 3.85% interest rate, the government would still enjoy profits if the investment succeeds and the prices of oil palm improved or from selling it back.

“This means, the people’s money is still protected and we will never suffer losses – this proves the PH accusation that Felda will lose from the purchase of Eagle High is just slander.” – April 9, 2019.