The Sarawak government is to implement the corporatisation plan of its forestry department by March this year, according to well-informed sources.

But based on information that he has received, Sarawak DAP chairperson Richard Wong Ho Leng today described the move as "merely corporatisation in form but privatisation in substance."

"Corporatisation is only a label, it is a gimmick. In reality, the exercise is privatisation," he told malaysiakini .

The Sarawak State Assembly passed a bill a few years ago to corporatise the state's forestry department. With a land mass of about 123,000 sq km, Sarawak is endowed with large tracts of natural forests which are commercially harvested on a big scale.

The timber industry has spawned some of the world's largest timber-based conglomerates and today employs some 100,000 people.

Extreme secrecy

Sarawak's forests produce about 15 million cubic metres of log per year and generate an annual revenue of RM4 billion through exports of logs and finished timber products like plywood, timber dowels and mouldings.

Wong claimed that the privatisation move was shrouded in "extreme secrecy."

"Little is known about the process, except that the idea to privatise the department is known as it was mooted about 10 years ago."

"Sarawak's forests, environment and resources belong to all Sarawakians and should be prudently managed by the government. As such, they cannot be privatised and vested in the hands of a private company or individuals," he added.

Wong also called on Chief Minister Abdul Taib Mahmud to let Sarawakians know the reason(s) behind the privatisation move and why this had been kept low-key and confidential.

Shell department

According to the state DAP chief, he had learned that after privatisation the forestry department would be "non-functional and only a shell department with minimal staff (less than a dozen) to deal only with licensing and law enforcement."

As part of the corporatisation move, malaysiakini learns that assessment forms had been sent out to staff of the department recently.

"They are given an option to join the new private company. Those who not wish to join will be transferred to other departments," according to sources.

Some 2000 staff, many of whom are temporary or on contract, are affected. Malaysiakini understands that many unhappy workers of the department had called off a planned picket in front of the department's office in Sibu recently. Instead they had sent a memorandum to higher authorities, including the Yang di-Pertuan Agong.

Meanwhile, the new company Sarawak Forestry Corporation Sdn Bhd has recruited new staff, including a Canadian as chief executive officer and a Singaporean as general manager for corporate affairs. Several West Malaysians were also recruited into senior positions.

Wong told malaysiakini : "DAP is not opposing for the sake of opposing."

"But Sarawak DAP has on many occasions in the past made its stance clear that it is unwise, imprudent and indeed impermissible to privatise a government department where public interest is involved. These functions ought to be managed by the government as trustees of the people."

Linked to cronies

Wong said that the spate of privatisation exercises implemented in Sarawak in recent years had been better known for their "non-transparency and non-accountability."

He claimed that many of the privatised projects were awarded to "cronies linked to certain political parties without public tender."

He urged the government to exercise greater transparency and accountability in the award of all government projects "so as to reduce corruption."

"Only through transparent and accountable public tenders will the maggots of corruption be denied space to wriggle."

In the case of the forestry department, Wong reiterated that the department should be run and managed by the government and not privatised.

"Even if there were merits in privatising certain forestry operations (not departments), it is DAP's stance that the state government should consider other altneratives such as timber certification instead of privatisation," he added.

TONY THIEN is malaysiakini correspondent based in Kuching, Sarawak.