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Thursday, April 26, 2012

770 settlers sue Felda for RM422 million


Settlers across eight plantations in Pahang are suing the Federal Land Development Authority (Felda) for fraud and breach of trust claiming up to RM422 million.

The suit was filed at the Kuantan High Court by 770 settlers from Felda Chini and Felda Chini Timur in Pekan, Pahang though solicitors Daim & Gamany at noon today

It claimed that they had been cheated over the grade of their oil palm fruit.

The settlers named Felda and Felda Palm Industries Sdn Bhd as defendants and claimed the latter has been grading their yield of oil palm lower than it should have been for the last 17 years.

According to lead counsel R Sivarasa, the oil extraction rate of the settlers' yield was graded an average of 18.5 percent when the recommended rate from the Malaysian Palm Oil Board is at least 22 percent.


[More to follow]

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