Did Isa Samad bypass Felda board for RM160m hotel purchase?

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Isa Samad Did Not Obtain Formal Felda Board Approval for RM160 Million Hotel Purchase

The High Court heard that former Felda chairman Tan Sri Mohd Isa Samad did not seek explicit approval from Felda's Board of Directors (BOD) for the RM160 million acquisition of Merdeka Palace Hotel & Suites (MPHS) in Kuching, Sarawak. This lack of formal endorsement was confirmed by former Felda director-general Datuk Hanapi Suhada, who was present at the BOD meeting where the decision was implicitly made. The purchase by Felda's subsidiary, Felda Investment Corporation Sdn Bhd (FICSB), proceeded without a written decision from Felda's BOD, despite the transaction exceeding the RM100 million investment mandate.
No Formal Board Approval Recorded for Hotel Acquisition

Datuk Hanapi Suhada testified that while he attended the Felda BOD meeting where the hotel purchase was discussed, no formal resolution was recorded for the RM160 million acquisition of Merdeka Palace Hotel & Suites. He indicated that the chairman, Tan Sri Mohd Isa Samad, had the authority to decide whether a working paper could be presented to the board. Hanapi confirmed that the approval for the hotel purchase by FICSB was merely implied, with no explicit written decision documented by Felda's BOD.
Working Paper Should Have Been Presented to the Board

The former director-general stated that a working paper concerning the hotel purchase should have been presented to the Felda BOD, particularly as the investment figure of RM160 million surpassed the RM100 million investment mandate previously established. He acknowledged that the RM100 million investment mandate, decided by Felda, had not been withdrawn or abolished. Minutes from Felda BOD meetings, specifically meeting number 328 dated June 23, 2015, and number 329 dated August 4, 2015, did reference an advance payment of RM100 million to FICSB for the hotel project.
Standard Operating Procedure Introduced Post-Issue

It was also revealed during cross-examination that the standard operating procedure (SOP) at FICSB was only implemented after the issue surrounding the hotel purchase came to light. Hanapi agreed with the defence counsel that prior to the introduction of this SOP, decisions within FICSB were made more informally. Mohd Isa himself is facing charges related to breach of trust and receiving bribes totalling over RM3 million, allegedly committed between April 29, 2014, and December 11, 2015.

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Did Isa Samad bypass Felda board for RM160m hotel purchase?

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