The government has been ordered to pay RM130 million in compensation to victims of the Nipah virus for mishandling the outbreak of the disease between September 1998 and May 1999.

Kuala Lumpur High Court Senior Assistant Registrar Suzarika Sahak issued the order yesterday, following the government's failure to enter its statement of defence as ordered by the Court of Appeal last year.

The compensation is for loss of pigs that had to be culled (RM73.41 million), damage to farm facilities (RM60.8 million), medical expenses (RM1.19 million) and funeral expenses (RM185,000) to victims and their relatives.

The court will later determine unspecified costs of general damages, exemplary damages and aggravated damages.

As the government will have seven days to appeal the order, the plaintiffs - represented by the Nipah Rescue Committee - remain cautious about the final outcome.

Vice-chairperson Lai Poh Chon noted that "the compensation has not reach our hands yet".

The suit was filed in 2002 by a group of 184 comprising pig farmers and the families of deceased victims or survivors. They named the federal government and the governments of Negri Sembilan, Perak and Selangor as respondents.

They claimed the respondents had breached their duties, committed negligence and fraud and unlawfully deprived the plaintiffs of their fundamental rights in handling of the Nipah outbreak in the different states.

It was reported to have killed more than 150 people and crippled the pig-farming industry in Bukit Pelanduk, Negri Sembilan, which was believed to be the biggest in Southeast Asia.

Loss of livelihood

Most of the farmers have maintained that the compensation will only be enough for them to repay their huge debt, losses incurred and medical expenses.

It is estimated that around 500 people are still suffering from paralysis and various ailments even after recovering from the Nipah virus attack.

The victims also harbour hope that the government will allow them to return to pig farming, a traditional occupation for their family-owned operations since the 1950s. Most have no other expertise except in rearing pigs and many are now working as part-time labourers.

They persisted with their legal suit despite an early setback in February last year, when the KL High Court struck out their case on grounds that they had not identified the government officers responsible for causing damage to the farm facilities.

In April, they filed an appeal. A three-member bench comprising Justices Gopal Sri Ram, Richard Malanjum and Hashim Yusoff decided there was no need for the appellants to name all the officers involved and the co-defendants.

The Court of Appeal then ordered the government to enter its defence in the high court by June 30 last year, but the respondents did not comply. Earlier this month, lawyers for the plaintiffs sought an order on compensation.

The plaintiffs were represented by counsels R Sivarasa and Ser Choon Ing, while senior federal counsel Amarjit Singh represented the respondents.