KUCHING: Sarawak Oil Palm Plantation Owners Association (SOPPOA) welcomes the move to fight against illegal logging and corruption practices associated with illegal logging in Sarawak, but strongly opposes the freezing of bank accounts of other business which are not related to such activities.
SOPPOA was responding to the news report for the past two days which highlighted that more than 400 officers from MACC and various state agencies raided log ponds, sawmills and business premises across the state. This resulted in the freezing of bank accounts of companies and individuals amounting to RM560 million.
However, on the freezing of the 375 bank accounts of companies and individuals, SOPPOA was informed by its members that some of the bank accounts frozen had no relations to logging activities. They included those of plantation companies, educational institutions, hospitality business, and many other businesses across Sarawak, which is grossly unfair to the business community in the state. It appears some of the companies’ bank accounts are frozen by reason that they have common directorship
Such a move has caused great disruptions to the operation of businesses and undue hardship to these companies. This has a direct adverse impact on the chain of business partners, contractors and suppliers servicing these companies, employees and their families. It is unthinkable that actions can be taken against companies which are not even remotely related to logging activities with the indiscriminate freezing of their bank accounts.
SOPPOA members are deeply sadden by this turn of events as these plantation companies will face severe cash-flow strain in making payments to their contractors, suppliers, including to oil palm smallholders/farmers supplying fresh fruit bunches to the mills, and meeting the salaries obligations of their employees and workers. If workers are not paid, fruits will not be collected which will result in significant losses to the companies, and loss of tax revenue to the government. Many oil palm smallholders are Sarawak natives, and this state of affairs will seriously dampen their coming Gawai celebration.
Therefore, SOPPOA called for the federal and state governments and MACC to consider urgently to lifting the freeze on bank accounts of oil palm plantation companies and those of other businesses that are non-timber related and to allow the business to function as normal while the investigations continue. This is to ensure that the operation of the companies, chain of business partners, investors, employees and their families are not unfairly being victimised in the process.
SOPPOA said oil palm supply chain had always been one of the most transparent and tightly regulated business in Malaysia and enjoyed good reputation internationally.
The provisions under MACC Act and Anti-money Laundering and Corruption Act allowing the freeze of bank accounts before any charge is made are harsh and severe and should be invoked cautiously and sparingly.
SOPPOA gives full support to the federal and state authorities to charge and prosecute all the companies and individuals found to be involved in illegal logging operations, but the indiscriminate freezing of banks accounts has drastically disrupted the business operations of companies in Sarawak, in particular on those companies that are non-timber related. This hascaused hardship and prejudice to the many innocent companies and individuals especially the employees and their families, and all stakeholders in the supply chain.
In this regard, SOPPOA calls for the speedy action of MACC to deal with the issues raised with utmost urgency.
Taken from New Sarawak Tribune
