“The waiver was implemented at the Felda level without any allocations being channelled from the federal government in 2021 and 2022.

“This had left a big impact on Felda’s cash flow and (financial) performance,” it said in a statement.

It added that the current administration’s government guarantee of RM9.9 billion to Felda through the issuance of sukuk and revolving credit would ensure its longevity.

“The Assignment for Financial Service Reserve Account (FSRA) agreement gives Felda the room to restructure its financial commitments while waiving the RM8.3 billion in settlers’ debt.”

This comes amid the dispute between Prime Minister Anwar Ibrahim and former prime minister Muhyiddin Yassin over the debt waiver scheme for Felda settlers.

Yesterday, Muhyiddin demanded an open and unconditional written apology from Anwar following the prime minister’s claim that the Felda settlers’ debts, totalling RM8.3 billion, had never been waived under Muhyiddin’s administration.

Muhyiddin also demanded that Anwar furnish proof that the latter, as the finance minister, had signed a debt waiver in June.

Earlier today, Anwar produced two documents, a government guarantee issued to Felda and a RM990 million payment instruction from the government to the authority, to back his claim.

He then demanded that Muhyiddin apologise for slandering him.

Separately, the finance ministry confirmed that the first payment of RM990 million had been disbursed on July 18.

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