Malaysia

[UPDATED] NCA ‘legally impotent’ as it is now: Sabah AG

State govt will not permit incorporation of inequitable penalty clauses in carbon trade deal, says Datuk Nor Asiah Mohd Yusof 

Updated 2 years ago · Published on 09 Feb 2022 8:48PM

[UPDATED] NCA ‘legally impotent’ as it is now: Sabah AG
Sabah Attorney-General Datuk Nor Asiah Mohd Yusof says the state government has called for her office to carry out a more in-depth due diligence in the areas of financial networks and capability of the Singapore-based Hoch Standard’s funding. – Sabah Attorney-General official website pic, February 9, 2022

KOTA KINABALU – The controversial Nature Conservation Agreement (NCA) inked last October is a non-binding framework agreement and is “legally impotent”, said Sabah Attorney-General (AG) Datuk Nor Asiah Mohd Yusof on the status of the carbon trade deal.

She said the NCA is not finalised and non-binding because, among others, the matter of designated areas has not been identified and ascertained.

Until it is incorporated, each and every term, condition and penalty in the proposed NCA is rendered non-binding and unenforceable, she added.

“In short, the NCA in its present form is legally impotent.”

She added that contract terms in the NCA that are unfair and absurd will be removed in the process of finalising the deal.

“The identification and obtaining free prior informed consent from all affected indigenous communities, and, finally, the identification and ascertaining of suitable and available ‘Totally Protected Areas’, which are identified as ‘Designated Areas’.”

In a statement today, Asiah also criticised inaccuracies contained in a Sarawak Report article.

“As the proposed NCA is not in force, its penalty clauses are not binding. 

“Moreover, the state government will not permit such inequitable and one-sided penalty clauses to be incorporated in the event that the NCA is finalised.

“Similarly, it shall be observed that a clause in the proposed NCA that seeks to blind the Sabah legislature in any form is void or illegal under the Contracts Act 1950.” 

In a bid to address criticism and controversies on the NCA, she said the agreement is subject to due diligence and will be carried out to the satisfaction of the state AG and the Sabah cabinet.

She added that the proposed NCA and its promoters are now being scrutinised by her office as part of the due diligence exercise.

“Unless and until Hoch Standard, its promoters and affiliates meet the requirements of the Sabah government, the proposed NCA will not proceed.

“The signed NCA is incomplete and hence, non-binding, until Hoch Standard satisfactorily meets the requirements outlined in the addendum.”

Nor Asiah said the state government has called for her office to carry out a more in-depth due diligence in the areas of financial networks and capability of the Singapore-based Hoch Standard’s funding.

She added that the state government has, in principle, approved the concept of carbon trading, and the Sabah Climate Change Committee (SCAC) established by the state will assess and advise the state cabinet on matters related to the NCA.

“The cabinet reserves its right not to finalise the NCA, and SCAC will lead a multi-party dialogue with all stakeholders where representations from across all political factions in Sabah will be called upon.”

Nor Asiah said the Sabah government’s policy on carbon trading includes the promotion of carbon sovereignty, in which the state reserves its rights and will harvest and build its expertise under the SCAC to manage carbon trading in accordance with global standards. – The Vibes, February 9, 2022

Related News

Malaysia / 6d

Video shows orangutan raiding cafe fridge for drinks in Sabah

Malaysia / 1w

Sarawak deputy minister says nothing achieved yet on push to increase state’s MPs

Malaysia / 1w

Perikatan to participate in coming Sabah polls

Malaysia / 1w

Debate swirls over proper term to describe indigenous people of Sabah

Malaysia / 1w

Bridge between Sabah, Labuan vital to revitalise island’s economy, says expert

Malaysia / 3w

Sabah passes new Ocean Thermal Energy Conversion Bill

Spotlight

Malaysia

PRS proposes party president to fill vacant Senate president’s post

Malaysia

Ex-inspector escapes gallows, gets 33 years for wife’s murder

Malaysia

Foreigners make up 10% of Malaysia population

Malaysia

Cop pleads not guilty to student’s murder

Malaysia

Banks warn about scammers who impersonate NSRC officers

Malaysia

Jeffrey recalls memories of ISA confinement 33 years later

By Jason Santos

You may be interested

Malaysia

Tomorrow's planes may fly on hydrogen produced in Sarawak, Abg Jo tells energy summit

By Desmond Davidson

Malaysia

Go hard on those wanting to cause chaos, Anwar tells police

Malaysia

‘Inspector Sheila’ fails to quash public nuisance charge

Malaysia

Sabah’s 40% revenue claim more than just 'aspirational', says CM

Malaysia

Long term effects of Account 3 withdrawals could be severe, says NGO

Malaysia

Police identify 20 Jemaah Islamiyah members in Johor

By Alfian Z.M. Tahir

Malaysia

Rafizi: Diesel subsidy rationalisation to be announced in due time

Malaysia

Economy grows 4.2% in first quarter