KUALA KANGSAR, July 8 — Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi said that proactive measures will be taken to address the problems faced by Felcra Berhad and its subsidiaries, due to the high debt burden.

Ahmad Zahid, who is also the Minister of Rural and Regional Development, said a committee had been formed to study the recommendations, put forward by the Public Accounts Committee (PAC), to resolve the issue.

"I would like to thank the Auditor-General and PAC for highlighting this issue, and as the minister in charge, I must resolve this problem and find a way to address the irregularities,” he told the media at the opening of the Kuala Kangsar Umno Division representative meeting, at Dewan Jubli Perak, today.

Ahmad Zahid said he has conducted research and discussions with the chief executive officer, and subsidiaries under Felcra, to resolve the debt problems.

The discussions included finding any agency or company interested in buying a commercial development project in Jalan Semarak, Kuala Lumpur.

"Thus far, the building has not been sold, but as the minister currently responsible for rectifying the accounts and investments in Felcra, I have identified at least three agencies or companies which have the potential to purchase the completed building.

"The construction cost of the building is quite high, and we aim to sell it based on demand and market price so that the proceeds can repay Felcra’s debts to the government,” he said.

On June 26, the PAC made five recommendations to the government, to monitor the high debt issue incurred by Felcra Berhad and its subsidiaries.

The PAC recommended that the Ministry of Rural and Regional Development (KKDW) and Felcra exercise greater responsibility and strict regulation of their subsidiaries to generate profits and achieve their establishment goals.

Ahmad Zahid said the views and recommendations made by PAC are related to the issues highlighted in the Auditor-General’s Report (LKAN), which was tabled in Parliament on July 4.

He added that these recommendations will be debated in Parliament tomorrow (July 9). — Bernama