The Kelantan government will file an appeal against the Kota Bharu High Court’s order to pay a staggering RM800 million to a logging company.

Yesterday, the state government was ordered to pay the sum - the biggest court-ordered payout in Malaysian history - to Timbermine Sdn Bhd for reneging an agreement made 45 years ago.

“We will ask our lawyers to study the decision and file an appeal,” state executive council member Husam Musa told Malaysiakini.

“The agreement was inked in 1964, and cancelled on March 1975 under the administration of Barisan Nasional. The BN menteri besar was Mohamed Nasir,” he added.

Mohamed Nasir was a PAS leader at a time when the Islamic party was a member of BN coalition.

Husam said the issue reached a critical point in 1977, resulting in Kelantan PAS kicking out Mohamed Nasir from the party.

State of emergency

A state of emergency was declared in 1978 and Kelantan was administered by federal-based National Operation Council before Umno took over the state until 1990.

PAS, which withdrew from BN in 1978, eventually won back Kelantan at the 1990 general election.

According to Husam, Timbermine took legal action after Mohamed Nasir cancelled its logging rights in 1975.

Following this, the state government formed a consultative committee to negotiate terms with the company and a settlement of RM3.5 million was agreed upon.

In addition to this, a new company was established where the state would hold a 70 percent stake, while the balance was held by Timbermine.