Radzi Jidin Questions KPF’s RM127 Million Loan to Al-Rawda, Cites Links to Tabung Haji RCI Controversy

KUALA LUMPUR, Aug 25 — Putrajaya Member of Parliament Datuk Dr Radzi Jidin has raised critical questions regarding Koperasi Permodalan FELDA (KPF) granting loans totaling up to RM127 million to Al-Rawda Investment for Real Estate Development and Project Management Ltd, highlighting potential links to the troubled Tabung Haji (TH) hotel lease deal.

In a Facebook post, Radzi noted that the Royal Commission of Inquiry (RCI) report on Tabung Haji recently brought to light upfront advance payments amounting to 1,426 million Saudi Riyals (approximately RM1.5 billion) made between 2015 and 2017 to Al-Rawda for the lease of four hotels in Madinah and Makkah.

The TH deal, backed only by a personal promissory note from Al-Rawda owner Dr Mashhoor Ali Omar Almadoodi, was cited in Parliament on Aug 11, 2026, as lacking bank guarantees and incomplete due diligence, rendering it one of 14 problematic investments requiring a forensic audit.

Radzi pointed out that a review of KPF’s financial statements revealed a parallel exposure to an entity under a near-identical name, raising concerns among FELDA settlers and cooperative members waiting to redeem their shares.

According to KPF financial records, loans extended to Al-Rawda commenced in 2014 with an outstanding balance of RM2.1 million, escalating to RM9.9 million in 2015, RM40.5 million in 2016, and RM41.3 million in 2017 under “Other Debtors.” By 2018, the peak loan balance reached RM127 million before being reclassified under “Corporate Financing” at RM119.4 million from 2019 through 2025.

Radzi highlighted that a TH press release dated Jan 10, 2018, regarding official signage on hotel properties explicitly named “Al-Rawda Investment for Real Estate Development & Project Management Ltd” and noted the attendance of “Dr Mashhoor Ali Al Madodi,” indicating that both institutions were dealing with the same company and individual.

KPF’s 2021 financial statements noted that Dr Mashhoor personally guaranteed the financing and pledged two properties as collateral: the Altahliya Hotel in Jeddah (fair value RM223.19 million) and the Rauda Al Aqiq Hotel in Madinah (fair value RM276.75 million). Despite legal actions initiated by KPF in 2019 to recover the outstanding RM119.4 million, financial notes up to 2025 show the full debt remains unrecovered, with an arbitration decision anticipated by May 31, 2026.

In light of these findings, Radzi urged KPF management to provide immediate clarification on several key points:

• Regulatory Compliance: Whether issuing loans to Al-Rawda violated Section 51(1) of the Co-operative Societies Act 1993 and Clause 66 of KPF’s By-laws, which restrict lending strictly to cooperative members, employees, subsidiaries, or other cooperatives.
• Due Diligence and Approvals: The commercial basis for granting loans up to RM127 million to Al-Rawda, whether proper due diligence was performed, and who authorized the financing.
• Asset Overlap: Whether the Rauda Al Aqiq Hotel pledged as collateral to KPF is the same property leased by Tabung Haji from Al-Rawda.
• Recovery Status: The current status of legal proceedings and arbitration efforts to recover the RM119.4 million balance, given that TH has not received payments from Al-Rawda since March 2019.

Radzi stressed that KPF members, comprising FELDA settlers, staff, and associated cooperatives, deserve full transparency regarding the management and safety of public funds entrusted to the institution.

–NMT