KOTA KINABALU: A lawyer representing the Sabah government has denied claims made by Sarawak Report that the troubled Sabah Forest Industries Sdn Bhd (SFI) land was sold at a cheap price. Tengku Datuk Fuad Ahmad, the lawyer who represents the Sabah Chief Minister, the Lands and Survey director, and the Sabah state government, has stated that the article by Sarawak Report contains misleading information and factual errors.
The article alleged that a private operator received help from influential sources to purchase 280,000 hectares of forest land for only RM256 million, which is said to be a small fraction of its actual market value. Additionally, the article claimed that the same individual had agreed to pay RM1.2 billion when SFI was first put up for sale in 2017.
Tengku Fuad clarified that SFI’s assets included a timber complex machinery and an Acacia Mangium Forest area situated on 15 parcels of land totaling approximately 12,000 hectares. He also mentioned that the tender exercise did not involve the sale of SFI’s timber concession license, as it cannot be sold as per the license terms.
In August 2022, the Sabah government acquired the 15 parcels of land from the insolvent SFI under the ‘Sustainable Forest Timber Utilisation, Processing, Management, Conservation Research and Development Scheme, District of Sipitang.’ The Sabah Land Acquisition Ordinance required the Sabah government to pay reasonable compensation of RM256 million to SFI (in liquidation) in exchange for the land.
The valuation was based on factors such as the poorly maintained buildings, structures, and facilities of SFI and the condition of the Acacia Mangium Forest areas, which suffered from neglect and disease. Tengku Fuad emphasized that the Sabah government now fully owns the acquired land and intends to develop it according to the Public Purpose Scheme, which focuses on sustainable forest management, research, and reforestation in Sipitang.
The Sabah government plans to invest approximately RM3 billion over the next five years for forest re-planting, research and development, and new timber downstream facilities. Former SFI workers and their families are allowed to stay on the acquired lands, and the government aims to reabsorb them into the workforce through the Public Purpose Scheme.
Tengku Fuad criticized Sarawak Report for relying on sources with ulterior motives and accused them of attempting to pressure the Sabah government into accepting a counter-offer of RM625 million for the land. He also pointed out that the Sabah government is already in negotiations with the Receivers and Managers of SFI regarding compensation.
In conclusion, Tengku Fuad stressed that the individual mentioned in the Sarawak Report article and his companies had no involvement in the acquisition of the land, which was solely initiated by the Sabah government for the benefit of the people of Sipitang.
Credit: The Star : News Feed
