A second police report has been lodged against Pahang Menteri Besar and state Umno chief Adnan Yaakob - already embroiled into a controversial multi-million ringgit logging scam - for allegedly "breaching the law and cheating" a logging company.

The report was backed by several receipts for payments totalling more than RM320,000, which were allegedly made to two right-hand men of the menteri besar.

The complainant, Seruan Gemilang Makmur (SGM) Sdn Bhd director Lee Sin lodged the report at the city police headquarters in Kuala Lumpur last week and submitted relevant documents for investigation.

Copies of the police report were distributed during a press conference called by PAS Kubang Kerian member of Parliament Husam Musa at the Parliament lobby this afternoon.

In the report, Lee claimed he was asked to give Umno Bentong division secretary Shamsudin Ibrahim and another Umno member Mohd Ros Chik a total of RM173,000 in several separate "unofficial" payments, in order to obtain the lucrative logging concession.

Adnan is the Umno Bentong division chief.

'Reveal findings'

Lee also claimed he made another "unofficial" payment of RM150,000 to these Umno leaders, apart from an agreed fee of RM50,000 under an official document signed with Umno Pahang in 2000.

"(However) when we wanted to start logging, the Pekan district land office informed us that the land does not belong to Umno. It said the plot still belonged to the state government, despite the fact that approval had been given for the site to be alienated to Umno," the report said.

"(Therefore,) I have reason to believe that the approval by the Pahang Menteri Besar did not comply with the law, and that there was intention to cheat us (by asking for) the payments," the report said.

Husam said action should be taken against those concerned as soon as possible since this report follows an earlier one and two other complaints to the Anti-Corruption Agency. He also urged the police to reveal the findings of their investigations into the case.

He questioned why the huge plot of land had been allocated to Umno, especially since Prime Minister and Umno chairperson Dr Mahathir Mohamad had earlier said that political parties are not allowed to own state land.

Also present at the press conference were two other SGM directors, Syed Ali Badarudin and Syeikh Mohd Zurid Tok Muda Sheikh Hassan.

The story so far

The logging scam highlighted in July and August by malaysiakini centred around a 10,000-acre plot of land - about 40 sq km in size - near Pekan.

It was awarded to Umno Pahang in 1998 by the state government led by then Pahang Menteri Besar and Umno state chief Khalil Yaacob, ostensibly for oil palm plantation.

To make the deal aboveboard, the party was required to pay a RM4.8 million land premium before logging activities could start. Although almost all of the land has been stripped to date, Umno has repeatedly failed to make the payment.

In 2000, Umno Pahang gave SGM the exclusive right to fell, extract and sell the logs in the area. In return, the company paid the party a mere RM50,000 for the deal which is believed to be worth millions.

Industry experts were puzzled by the extremely low transfer rate and questioned if there was any 'hidden agreement' between the two parties.

Documents in malaysiakini 's possession revealed that the deal was 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, but added 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. SGM has sought RM31 million from Umno Pahang.

However, the Kuantan High Court on Aug 15 allowed an application by Umno Pahang to set aside an earlier order for the party to pay RM70,000 to SGM in compensation. The date for the fresh trial has yet to be fixed.