'Prawn farm contract is merely tenancy agreement'

Pristine Agrofood Sdn Bhd director Chu Bak Tek has refuted Sekinchan assemblyperson Ng Suee Lim's claim that the company was in a joint venture with Agricultural and Agro-Based Industries Minister Noh Omar.

Chu told Malaysiakini the "joint venture agreement" furnished by Ng to the media yesterday was not more than a tenancy agreement to enable his company to operate a prawn farm on Noh's 30-acre land in Tanjung Karang.

He explained that his company has a responsibility to develop the land as stipulated by the contract, inked on Jan 5 last year, which includes providing labour, management and financing for the project.

"Under the contract, Noh (right), as the landlord, is supposed to allow us to establish a private caveat on the land and to sign whatever documents that are related to the land.

"This is merely just a tenancy agreement, and there are no financing and investments involved between his ministry and us," he said.

He said the contract was called a "joint venture agreement" because the landlord hoped the project would help generate the economy and promote the nation's agricultural industry, as well as creating new jobs for the locals.

Previously, the same piece of land was part of a 100-acre prawn farm that has since ceased operations. Pristine Agrofood took over the project last year.

'Strictly business'

Chu insisted that his relationship with Noh was "strictly business" and the agreement was struck with help from the previous prawn farm operators.

"Their agreement with Noh was signed way back in 1995. Later, they didn't want to continue their contract," he said.

Chu, a native of Sekinchan, said Ng should not make baseless accusations against his company and asked the state assemblyperson to check his facts before pointing fingers.

Yesterday, Ng (left) led about 100 people to protest in front of the farm on grounds that the minister had abused his powers while ordinary people were unable to apply for farm land.

The 30-acre site is about the size of 15 football fields.

On July 14, Noh was quoted by Sin Chew Daily admitting that he had a stake in the prawn farm. Two days later, he clarified that what he meant by "stake" was that he was the landlord.