Logging company Seruan Gemilang Makmur (SGM) Sdn Bhd has lodged a police report against Pahang Menteri Besar and state Umno chief Adnan Yaakob in relation to his remarks about a controversial multi-million ringgit logging concession .

In the report, SGM claimed that Adnan - who has denied Umno Pahang's involvement in the deal - was in contempt of the Kuantan High Court's ruling last month. The court had ruled that the party should pay the company RM70,000.

The report was lodged by SGM director Sheikh Mohd Zurid Tok Muda Sheikh Hassan on Saturday at the Kuantan police station. He is also a former Umno branch chief under the Pekan division.

"(The statement) contradicts the Kuantan High Court's ruling on June 13...which found that the defendant, Umno Pahang, has breached the contract," he said in the police report, a copy of which was made available to malaysiakini .

"The court awarded (SGM) a nominal damage of RM50 and costs of RM70,000."

Adnan was quoted in a news report recently as denying Umno Pahang's involvement in the botched deal, which it had signed with SGM in 2000.

SGM had paid Umno Pahang RM50,000 in return for being allowed to log a 10,000-acre tract - approximately 40 sq km in size - located near Pekan, ostensibly for oil palm plantation.

Legal redress

Several set of documents in malaysiakini 's possession also show that the deal - signed during former Pahang MB Khalil Yaacob's tenure - had been supported by several high-ranking Umno Pahang officials.

Adnan said he was unaware of it since the deal was approved by his predecessor in 1998. Khalil is now information minister and Umno secretary-general.

However, Adnan also claimed that SGM had dealt with "one or two individuals" who had allegedly cheated the company through misrepresentation and forgery.

Umno Pahang and SGM have been embroiled in a legal dispute since last year after the company failed to obtain a logging licence from the state forestry office to log the remaining 3,000 acres of the tract.

It is believed that Adnan, who took over Khalil's state-level duties in 1999, had refused to have anything to do with the deal. This then forced SGM to seek legal redress to claim RM31 million in compensation.

The court ruled on June 13 that Umno Pahang should pay SGM a total of RM70,000. However, the company considered the quantum to be too low and has since filed an appeal.

Counter-suit

Observers noted that Umno Pahang could have easily put a lid on the matter by paying the stipulated sum, but that the party has instead chosen to continue battling it out in court.

On June 17, Umno Pahang secretary Ahmad Tajudin Sulaiman filed an affidavit claiming that the party was the victim in the transaction and seeking counter-compensation.

Commenting on the issue last Friday, Prime Minister Dr Mahathir Mohamad said the party would investigate the scandal.

The premier said political parties are not allowed to own any state land, and that he was unaware of the allegation that Umno owned the tract in Pahang.

DAP national chairperson Lim Kit Siang in a statement last Friday pointed out that Umno Pahang's denial was weak, as the party had admitted its involvement in its affidavit filed in June.