No abuse of power, corruption in sale of stake in Indonesian farm, says Perak state agency

 

A majority stake in PT Pinang Witmas Sejati (PWS) in Palembang was sold by a subsidiary of Perak SADC for RM341.55 million recently. (Facebook pic)

IPOH: There is no element of abuse of power or corruption on Ladang Lekir Sdn Bhd’s (LLSB) disposal of 60% stake in PT Pinang Witmas Sejati (PWS) in Palembang, Indonesia recently.

According to a statement from the Perak State Agricultural Development Corporation (SADC), the disposal of the 60% stake in PWS by its subsidiary, LLSB, to Taiko Plantations Pte Ltd for RM341.55 million had taken into account several factors, including the current market value.

“In early 2020, an assessment was carried out by an independent and well-known valuation firm which reported, among others, that the 60% stake previously held by LLSB was worth about RM315 million,” SADC said.

In this regard, SADC asserted that the allegation that the farm was valued at almost RM1 billion but was sold at a low price because there was an element of abuse of power was untrue and unfounded as well as malicious.

SADC will thus take appropriate action against the parties who have made statements, allegations or insinuations in relation to the sale of the stake in order to maintain its integrity, it said.

According to SADC, before the decision to sell the LLSB stake in PWS was made in 2014, a motion of sale was tabled to the Perak State Executive Council, which, among others, recommended an independent committee be set up to advise the corporation and this had been complied with.

Subsequently, in May 2016, SADC presented a motion to sell the LLSB stake in PWS to the Perak State Accounts Committee in the interest of the corporation.

“The reasons given for the sale include replanting costs involving PWS’ oil palm plantations, farm lease periods as well as national policies implemented by the local authorities in Indonesia,” it said.

On Oct 19, Parti Bumiputera Perkasa Malaysia’s (Putra) Perak chairman Hamidah Osman urged the Malaysian Anti-Corruption Commission (MACC) to investigate the issue of the sale, alleging an abuse of power on claims that the disposal was made at a low price. - FMT