Forensic audit needed to determine abuse or governance lapses in Felda, says DPM Zahid

Deputy PM says forensic audit needed for Felda

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi has called for a forensic audit of the Federal Land Development Authority (Felda) to determine whether its management was marked by abuse of power, breach of trust, or governance lapses. Speaking to reporters on the sidelines of the World Islamic Tourism and Trade Expo (Witex 2026) in Kuala Lumpur on Sunday (Aug 23), he said a management audit alone would not be enough, given that the agency's problems were long-standing and had produced losses running into billions of ringgit.

"Felda is facing very serious and long-standing problems. The RM9 billion cannot be tolerated," he was quoted as saying. Ahmad Zahid, who is also the Rural and Regional Development Minister, made the remarks when asked whether he supported the establishment of a Royal Commission of Inquiry (RCI) to investigate Felda. He stressed that those responsible should be brought to justice if there was solid evidence, but the investigation should not be used to "victimise" or "humiliate" anyone. "We must not engage in persecution, injustice, or deliberately seek to humiliate any individual, as has happened before," he said.

The Felda community at stake is large: the government, he said, would protect the interests and well-being of 225,000 Felda settlers, with the community spanning five generations, involving about 1.8 million people.

The deputy PM also referenced a previous governance crisis in a related entity, FGV Holdings Bhd, in which former chairman and former chief executive were brought to court, while executives were suspended, as a caution about the dangers of an inquiry.

Ahmad Zahid said that responsibility for an investigation should be taken by the Prime Minister. The former Felda chairman, he noted, is already serving a sentence. "If there was an abuse of power or failure in governance and proper procedures were not followed, a detailed investigation must be conducted, in my view. More importantly, it should not be limited to management auditing. A forensic audit must also be carried out," he was reported to have argued.

PM Anwar: awaiting Task Force's report

Last Friday (Aug 2), Prime Minister Datuk Seri Anwar Ibrahim said he would wait for the full report of the Special Task Force investigating Felda's management issues before making any official announcement. He said the task force had begun its work, and findings were expected to be presented in the near future before being made public, similar to the RCI report on the Pilgrimage Deposit Fund.

Media reports that day added that Anwar had sent an official letter to Indonesian President Prabowo Subianto seeking special attention to Felda's investments, particularly PT Eagle High Plantations Tbk (EHP). Reports also gave more specificity about the financial scale: potential losses of up to RM2.5 billion could stem from investment decisions during previous management, with expected returns now likely around RM200 million.

Section: the question of justice and protections

Ahmad Zahid's insistence on a forensic audit and on accountability came with an explicit caution against revenge. "Those responsible should, of course, be brought to justice if there is strong evidence against them," he said. But that must not lead to persecution or unnecessary humiliation of individuals. His concern appears rooted in the earlier FGV case, where former officials were taken to court after the 2017 crisis, something he implied went beyond the bounds of responsible inquiry.

The claims that the Felda community of 1.8 million people—now in its first to fifth generation of settlers—should be protected were repeated by the deputy PM. He coupled legal accountability with a commitment to the community's well-being, saying the government would continue to stand behind the interests of Felda's settlers.

A question about the establishment of an RCI drew his response that long-standing mismanagement and the scale of financial losses mattered more than the kind of body used to investigate. In his view, the investigation should be taken forward by the Prime Minister personally, though the audit would need to be forensic, not just a standard management audit.

The comments set out a distinct division of responsibility: for Ahmad Zahid, the investigation's outcome must be justice without persecution, and the Prime Minister is the responsible person to carry it out. For Anwar, the operative step is to wait for the special task force's report before any announcement. Whether those positions will translate into a full public inquiry seems still to be as yet legally undefined, but the call for a forensic audit has been clearly put forward by the deputy PM.

Perspectives

• Ahmad Zahid Hamidi (DPM): The Felda problems are long-standing and involve RM9 billion in losses that cannot be tolerated. A forensic audit, not just a management audit, is essential to determine any abuse of power, breach of trust, or governance failure. Those responsible should face justice, but the probe must not be aimed at humiliating or victimising anyone. The Prime Minister should take responsibility for the investigation.

• Anwar Ibrahim (PM): Has said he awaits a full report from the Special Task Force before any official announcement, and the task force is already working on the issue, with findings expected publicly in a similar timeframe as the RCI report on the Pilgrimage Savings Fund.