Felcra S Rm312mil Debt Arrears Converted To Govt Equity

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Felcra CEO Mat Roni Zakaria said the conversion of the debt showed that the government was concerned about the land development debt burden faced by Felcra.KUALA LUMPUR: Felcra Bhd has clarified that the remaining loan arrears of its participants, amounting to RM312.22 million as at Dec 31, 2021, have been converted from a government loan to equity.
Chief executive officer Mat Roni Zakaria said the move was approved by the Dewan Rakyat on Aug 4, 2022.
“This enabled Felcra to strengthen its financial position for the long term, while simultaneously fulfilling its social responsibility to the participants in a more effective way,” he said in a statement today.
The statement was issued following the Auditor-General’s Report 2021 Series 2 released on Thursday.
The report had stated that Felcra’s debt arrears amounted to RM312.22 million as at Dec 31, 2021, up from RM82 million in the preceding year.
Mat Roni said the conversion of the debt showed that the government was concerned about the land development debt burden faced by Felcra.
He noted that as a corporate entity that is fully owned by the government via the Ministry of Finance (Inc), Felcra had a great responsibility to ensure that the two main thrusts of the company’s operations were executed — namely commercial business operations and its social mandate for the people, especially Felcra participants.
Mat Roni admitted that Felcra’s financial performance had been less than encouraging in terms of debt arrears.
He said the company’s dividend payout stood at RM163 million in 2020, RM478 million in 2021 and RM517 million in 2022. - FMT

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