Some time back, FELDA was asked to make a strategic investment in a company in the US. The investment was supposed to be beneficial to FELDA's presence in the global market. And the cost was RM300 million...! Or was it US$300 million...?
[NOTE: KPF was asked to take-up certain equity stake in the company but it "refused". KPF was heavily criticised by a number of people from FELDA Holdings Berhad (including Bakke Salleh). Ethos Consulting, too, criticised KPF for their reluctance...!]
There were reservations on this particular investment in the US by some prominent people. The logic was not convincing, to say the least. It has been quite some time since the investment was made. According to some stories that have since emerged, the investment has gone sour. Not bad yet but nevertheless sour...
What happened? What happened to the reservations voiced by R M Alias to some (key) ex-FELDA staff? Was due diligence done? If it was undertaken, what was the result? Was it in favour of such investment?
There are quite a number of questions that remained unanswered. One fact is clear - FELDA overpaid for this particular investment in the US.
Paying for over-priced investment seems to be a culture among Malaysian government-related agencies or companies.
Over paying is bad enough but making bad investment is worse and government-related agencies or companies seem to be making such decisions by the dozens these days...
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