PAC Pushes Governance Overhaul at FELCRA with Nine Reform Proposals
Independent valuations and tighter oversight central to improving plantation acquisitions
KUALA LUMPUR, March 3 — The Public Accounts Committee (PAC) has called for sweeping reforms at the Federal Land Consolidation and Rehabilitation Authority (FELCRA), presenting nine key recommendations aimed at strengthening governance standards and safeguarding financial sustainability in plantation acquisitions.
PAC chairman Datuk Mas Ermieyati Samsudin said the proposals follow a review of procurement practices involving commercial oil palm estates, with particular attention given to transparency, compliance and long-term return expectations.
At the heart of the recommendations is a requirement for FELCRA to appoint qualified independent consultants to conduct third-party valuations for all new commercial plantation purchases. PAC believes independent assessments are essential to ensure acquisition prices reflect fair market value and realistic earning potential.
The committee also emphasised strict enforcement of the updated standard operating procedures (SOP) introduced on August 15, which mandate third-party evaluations. Any breach of these provisions, Mas Ermieyati said, should trigger firm disciplinary or legal action without compromise.
Beyond internal compliance, PAC urged the Ministry of Rural and Regional Development (KKDW) to expand its supervisory role to cover governance decisions related to strategic asset acquisitions funded through FELCRA’s own internal resources.
To enhance accountability, the committee recommended quarterly internal audits to verify full compliance with strengthened SOP requirements. These audits should include checks on independent valuation processes and confirmation of ministry representatives’ physical presence at acquisition meetings. Findings must be reported to FELCRA’s board for further deliberation.
Financial prudence was another central theme of the recommendations. PAC advised FELCRA to revisit its projected Return on Investment (ROI) calculations using more comprehensive methodologies that account for all associated costs and market risks.
The committee also called for continued rehabilitation of underperforming plantations through stricter performance monitoring frameworks supported by clear key performance indicators (KPIs).
From a structural standpoint, PAC proposed the development of medium- and long-term strategies to reduce reliance on foreign labour by accelerating mechanisation initiatives. Improving basic facilities to attract local workers was also highlighted as a critical measure.
Additionally, the committee recommended reassessing land bank acquisition targets to ensure they align with FELCRA’s financial capacity and secure funding sources, thereby preventing long-term liquidity strain.
Finally, PAC suggested strengthening the composition of FELCRA’s board by appointing external professionals with diverse expertise to reinforce governance standards.
The recommendations reflect growing parliamentary scrutiny over plantation procurement practices, as policymakers seek to balance rural development objectives with disciplined financial management.
-wilayah.com.my
