Malaysia

Singapore denies involvement in Sabah’s NCA carbon trade deal

City-state’s high commission responds to claims that Temasek Holdings was backing Hoch Standard

Updated 4 years ago · Published on 07 Mar 2022 2:31PM

Singapore denies involvement in Sabah’s NCA carbon trade deal
Sabah’s NCA is drawing flak from civil society groups following a news report alleging that the deal was signed in secrecy by the state government and Singapore-based Hoch Standard. – Pixabay pic, March 7, 2022

KOTA KINABALU – Two opposition leaders have complained to the Singapore High Commission over the island republic’s alleged support for the Nature Conservation Agreement (NCA) in Sabah – a controversial carbon trading deal reportedly involving some two million ha of forest.

Warisan secretary-general Datuk Loretto Padua and party treasurer Terrence Siambun met with Singapore High Commissioner Vanu Gopala Menon in Kuala Lumpur last week to discuss the purported involvement of Singapore-based Hoch Standard Pte Ltd.

The duo raised with Menon the claim that the foreign company was supported by the Singapore government’s Temasek Holdings Pte Ltd.

In response, the Singapore High Commission confirmed to the two opposition officials that its government is not involved in the NCA.

“Warisan is determined to get to the bottom of the NCA that was signed and agreed upon by the Gabungan Rakyat Sabah government, without being discussed in the Sabah assembly,” Padua and Siambun said in a joint statement today.

They said the issue has been heatedly debated and has ignited interest, particularly among communities living in the affected areas.

The NCA drew flak from civil society groups in Sabah following a news report alleging that the deal was signed in secrecy by the Sabah government and Hoch Standard.

It was reportedly signed on October 28, with Sabah’s chief conservator of forests Datuk Frederick Kugan being one of the signatories. According to the report, the signing was done in the presence of Sabah Chief Minister Datuk Seri Hajiji Noor, Deputy Chief Minister Datuk Seri Jeffrey Kitingan and Sabah Attorney-General Datuk Nor Asiah Mohd Yusof.

The deal entails a 70:30 venture, with the Sabah government getting 70% and Hoch Standard 30% of proceeds.

It would see up to 2 million ha of protected forest being ‘locked’ for the purpose of carbon trading for the next 100 years. It was heavily promoted by Jeffrey, who claimed to have the support of Hajiji.

At a recent summit, Jeffrey said that the NCA could potentially earn up to RM5.6 billion for the Sabah government annually.

Warisan president Datuk Seri Mohd Shafie Apdal had previously called for the NCA to be debated in the state assembly, while former senator Adrian Lasimbang filed a suit against the NCA. A Kota Kinabalu court has set March 9 for mention.

However, Nor Asiah has noted that the NCA framework is unenforceable as it is not finalised. She also said the agreement is non-binding and legally impotent in its present form.

Recently, Jeffrey had announced that Yayasan Sabah was chosen to be the local partner to implement the NCA and Hoch Standard would assist the foundation with the technology and know-how.

A separate agreement would be drawn up, with Hoch Standard now needing to pay the foundation 5% of its gross revenue from the NCA, he said.

Hajiji has not said a word on the NCA since the controversy broke out early this year. – The Vibes, March 7, 2022

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