A high-level Umno-linked businessman has supported moves by the PAS Terengganu state government to replace timber concessions with an open tender policy. The businessman, who has previously benefitted from these concessions, now believes that such a policy - likely to be similar to that in Kelantan - will be more transparent and accountable. Yesterday, Terengganu Economic Development, Petroleum and Industry Committee chairperson, Mustafa Ali, was reported as saying that the state might abolish the timber concession policy because it encouraged cronyism and resulted in low revenues for the state.

According to the businessman who requested anonymity, the BN state exco will normally approve the concessions. "If you don't have any political endorsement, you will never ever get a concession," he stressed.

He added that one has to form a company, apply to the State Forestry Department with a surat sokongan (endorsement letter) from state political leaders and wait for state exco approval. "The state excos will determine who gets the concessions," he told malaysiakini today.

According to Kelantan State Forestry Department statistics quoted in the PAS website

Under the BN state government of Kelantan, an area of 158,200 hectares was logged between 1985-1989, bringing in a total revenue of RM167.6 million over five years. From 1994 to 1998, under PAS, the total area logged in Kelantan was 30,451 hectares, raising RM361.77 million in state revenue. The maximum area permitted for logging as specified by the National Forestry Council is 6,890 hectares a year.

Mustafa said that the Terengganu state government only collected RM16 million in premiums from timber concessions last year and he believed the figure could be increased eight-fold with an open tender policy. However, the policy has yet to be forwarded to the state exco for approval.