A company and its five subsidiaries have hauled the Selangor state government to court over an alleged conspiracy to end a contract over a reforestation project that has been in progress since 2001.
Mega Forest Plantation Management Sdn Bhd and the five others filed the suit at the High Court in Shah Alam today.
The other firms listed as plaintiffs are Megafores Nursery Sdn Bhd, a joint venture company with the state government; and subsidiaries Mega-Forestindah Paya Sdn Bhd, Mega-Foresternak Sdn Bhd, Megaforest Ideal Feed Sdn Bhd, and Mega Forest Plantation Sdn Bhd.
Filed by law firm Messrs Akram Hizri & Azmir, the lawsuit named the Selangor state government, Perbadanan Kemajuan Pertanian Selangor (PKPS), the state Forestry Department, and companies Trieco Green Sdn Bhd and General Gadget Solution Sdn Bhd.
When contacted today, the lawyer for the six plaintiffs, Hizri Hasshan, said that the suit was filed because the termination of the contract linked to sustainable forest management was driven by certain political elements.
“There were some political elements when the (Selangor) MB (menteri besar) changed to Khalid Ibrahim (after the 12th general election on March 8, 2012).
“The state government tried to exit from the project and cancel the contracts involved,” the lawyer claimed.
Hizri claimed that his clients only found out that the reforestation contract was terminated this year.
The subject matter of the suit involves a lease and concession agreement signed on Feb 22, 2001, involving reserve land of 5,000 hectares in Rantau Panjang Forest Reserve and 5,000 hectares of Bukit Tarek Forest Reserve, in Ulu Selangor.
The agreement is pursuant to reforestation whereby Acacia Mangium trees in both forest reserves would be replaced with Sentang, Jati and other tree species approved by the Selangor Forestry Department. The concession is for 60 years.
In a media statement issued today, Mega Forest Plantation Management contended that the suit was filed after to a subsidiary company of the state government ended the joint venture agreement (perjanjian usahasama).
The plaintiff claimed that the agreement was terminated on the alleged reason that their investment was invalid due to not having received the green light from the finance minister in 2001.
“Mega Forest Plantation questions why this matter was only raised now and why the legal requirement was not checked by the state government, when in fact all agreements are checked and approved by the State Legal Advisors at the time.
“The state government’s action is as though allegedly planned to push out investors after millions of ringgit were spent for the cost of reforestation of the forest reserve.
“This matter involves the issue of integrity and governance of the state government currently helmed by Pakatan Harapan,” the firm claimed.
According to a copy of the suit’s statement of claim, the six companies are seeking declarations that the defendants have perpetrated a tort of conspiracy to injure by denying the plaintiffs’ rights under the joint venture agreement and tort of unlawful interference against the plaintiffs’ business.
They seek a declaration that the Selangor Forestry Department and Trieco Green entered into an invalid contract that amounted to a conspiracy to destroy the assets (replanted trees) worked on by the plaintiffs.
The plaintiffs are seeking a court order for restitution on the loss of assets on the involved land at current market rates, among others.
They also seek an interim injunction to restrain the defendants from logging, encroaching or selling the assets, pending disposal of the suit.
The legal action is fixed for first case management before the High Court in Shah Alam on March 1. - Mkini
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