JAKARTA (TheInsiderStories) — Indonesian plantation company, PT Eagle High Plantations Tbk (IDX: BWPT) and Malaysia’ Federal Land Development Authority (Felda) drama is still ongoing. The management said there has been a cheating on the Eagle High Plantation shares sales and purchase owned by the Rajawali Group, the theedgemarket reported.
Today (04/08), Felda’ Director General Othman Omar submitted a police report, claiming that it was cheated into entering into a one-sided deal for Eagle High Plantations purchased two years ago. He explained that the deal benefits Rajawali Group, which include more than US$505 payment, whereas the finance ministry and Felda realised there are many risks involved.
The price was more than 300 percent inflated. Omar mentioned that the value of its 37 percent acquisition was only $114 million but Eagle High Plantations held $547.4 million debt in 2014 and its liability was $676.9 million in 2016.
Moreover, the plantations company does not possess the Roundtable on Sustainable Palm Oil accreditation and would not be able to achieve the certification even after 10 years.
Eagle High Plantations, subsidiary of Rajawali Group, is owned by Indonesian conglomerate Peter Sondakh, the former Malaysia Prime Minister Najib Razak’ friend. When Razak lost the election and feared of being arrested over the 1MDB graft-case last year, Sondakh was reported planning to help him running away through private jet.
Omar suspects that the agreement is due to Razak directing Felda for its investment on Sondakh’s interests in Eagle High Plantations and that Sondakh used his influence on Razak, resulting in Felda purchasing the stake at an inflated price.
According to him, the direction for Felda to invest in Eagle High Plantations’ 37 percent stake was stated in the finance ministry letter to Felda on Dec 8, 2015. The purchase of Eagle High Plantations was done through its special purpose vehicle FIC Properties Sdn Bhd, although it was against consultancy advice made by KPMG Malaysia, BDO Malaysia, Indonesian law firm Hiswara Bunjamin, and JPMorgan in 2016.
He suspected that some of the previous board of directors are involved in criminal conspiracy to cheat and cause Felda to suffer losses through the Eagle High Plantations agreement resulting in Felda entering a deal to get a loan from GovCo.
Omar added that Razak’ allies had caused Felda getting RM2.5 billion loan from GovCo Holdings Bhd, a subsidiary of the finance ministry under Najib’ watch. By taking this loan, Felda suffered RM1.576 billion loss in 2017.
He further named seven individuals who he claimed are involved in criminal conspiracy, criminal breach of trust, possible graft involving public officers and cheating, and asked the authorities to investigate them.
Earlier in February, Felda requested to give back Eagle High Plantations shares. Management said that the company holds too many debts.
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