MELAKA, Oct 12 (Bernama) -- The Federal Land Development Authority's (FELDA) assets exceeds its liabilities, hence the allegation that it is on the brink of bankruptcy, prompting its London property sale was uncalled for.
Its Chairman, Tan Sri Shahrir Abdul Samad said bankruptcy would occur when one's assets were worth less than liabilities, hence not enough to pay the debts, but in the case FELDA it was the opposite.
"When we have a surplus we convert it to bank savings or buy fixed assets. So, with fixed assets we sell part of them to solve cash flows, no point keeping a lot of properties and not selling them," he told reporters after a gathering organised by the Felda Malaysia Youth Council here today.
FELDA is putting the Grand Plaza Serviced Apartments in London for sale as part of its initiatives to reorganise and restructure its assets in order to strengthen its financial position.
Shahrir said Felda plunged into debts last year and the agency needed to find ways to get out the quandary through internal resources by diluting its assets, but it would not affect its function and responsibility as they were not its core business.....