KUALA LUMPUR, 26 JANUARY, 2012: The government may have to bear the cost of RM1.5 billion to cover the amount of deficit should Felda Global Ventures (FGV) be listed in Bursa Malaysia, says the president of Persatuan Anak Peneroka Felda (ANAK), Mazlan Aliman.

Speaking to reporters, Mazlan (pic) said, after the lease agreement between Felda and FGV, they would only be able to generate RM508 million, whereas their expenditure per year was RM2 billion.

He said, in the end, the government has to fork out the bill by using its funds which is also the taxpayers’ money.

Meanwhile, Mazlan said Gerakan Selamatkan Felda will be conducting a state-to-state roadshow to expose more about the risks due to Felda Global Venture's (FGV) listing on Bursa Malaysia.

He said the roadshow will begin this February and part of the activities will be the panel members exposing to Felda settlers in the respective states about the risk of FGV being listed.

"(The revelations of the risk involved in the listing of FGV is) so that they (the rakyat), especially Felda settlers will understand about the loss and gains of their future whenever Felda is listed," said Mazlan during a press conference at PAS headquarters today.

Felda or the Federal Land Development Authority is known as the largest land development authority for settlers planting rubber and oil palm in the country.

The latest move sees the proposed listing of FGV into the Bursa Malaysia where it has obtained approval from the Companies Commission of Malaysia to change its status from a private limited company to a public limited company.

The company's status change is part of the preliminary process in preparing for its initial public offering (IPO).

ANAK has viewed this as undermining the rights of the settlers and opening the ownership of their land to investors, including foreigners, following the listing exercise.

Mazlan also argued that the move would further undermine the original intent of the setting up of Felda, which is to help poor rural Malays.

- mD