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Blast from the past: Pahang Umno's logging scandal
Oct 27, 09 3:14pm
NONEMalaysiakini reported an exclusive story in July 2003 about how the Pahang government had awarded a plum logging concession to the state Umno, both headed by the same person.

The report, published in July 21, 2003, was based on a tip-off from a reader who alerted Malaysiakini about the land deal which enriched the political party.

The report was as follows:

The Pahang government, which is led by the state Umno chief, 'awarded' a plum logging concession believed to be worth about RM100 million to the ruling party five years ago.

illegal logging 260608 02The concession, granted in March 1998, allows the party to log a 10,000-acre plot of land in Nenasi, about 100 kilometers south of Kuantan. Industry experts have conservatively estimated that the logging proceeds from this concession to be close to RM100 million.

To make the deal aboveboard, the party is required to pay a premium for the concession - a figure of RM4.8 million - to the state forest department. However until today, no payment has been made.

The party's motives in obtaining the land becomes even murkier as other documents in malaysiakini's possession indicate that Umno Pahang had given its concession rights to a Kuantan-based company, Seruan Gemilang Makmur (SGM), for a paltry RM50,000.

This deal, signed in October 2000, gave SGM exclusive rights to extract, remove and sell all the timber logs in the 10,000 acres - or about 40 sq km - belonging to Umno Pahang.

Umno Pahang working secretary Abdullah Rahmat signed the deal on behalf of the party.

Industry experts contacted by Malaysiakini have questioned the extremely low transfer rights and wondered if there was a "hidden agreement" between the two parties.

Read the full report here
nenasi umno logging locationMeanwhile satellite images obtained by Malaysiakini of a virgin forest given to the party in Pahang showed a huge oblique patch - about 60 sq km in size - visible from space, the mark of systematic logging over the past years.

The bright green plot, as seen in the satellite photos, was once 10,000 acres of virgin peat swamp forest in southeast Pahang, which had been methodically clear-felled.

On paper, the Pahang Umno land should be about 40 sq km, but it appears to be closer to 60 sq km in the satellite images.

Industry sources said this could be because loggers might have encroached into the neighbouring forest reserve and wiped out a large slice of the protected wetland.

Read: Satellite photos confirm widespread logging on Umno's land
azlanIn the latest development on the matter, the Court of Appeal on Oct 9, 2009, ruled that Pahang Menteri Besar Adnan Yaakob was not personally liable to pay RM63 million damages to logging company Seruan Gemilang Makmur Sdn Bhd for breach of agreement over logging concession agreement in that area.

The court ruled that the menteri besar, who is also the state Umno chief, was wrongly named in the suit.

Adnan was not the state menteri besar when Malaysiakini first broke the story. The post was held by Mohd Khalil Yaakob, who is now the governor of Malacca.

Read: Umno logging scam: Pahang MB need not pay RM63 mil

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