Malaysia

Logging commences in areas formerly run by now-defunct SFI

Video shared by Warisan leaders shows timber-felling activities in former pulp and paper estate

Updated 2 years ago · Published on 08 Aug 2023 8:08AM

Logging commences in areas formerly run by now-defunct SFI
Datuk Azis Jamman (left) and Datuk Junz Wong in a screen grab of the video where they capture the logging activities at the Sipitang forest areas formerly allocated to Sabah Forest Industries. – Screen grab pic, August 8, 2023

by Jason Santos

KOTA KINABALU – Logging activities have been observed within the forest areas formerly allocated to the now bankrupted Sabah Forest Industries (SFI) in Sipitang.

A video capturing the logging activities was shared by a couple of state opposition leaders from Warisan during their visit over the weekend.

The two leaders, former Sepanggar MP Datuk Azis Jamman and Tg Aru assemblyman Datuk Junz Wong questioned whether the felling of the timber and its export are allowed while an ongoing injunction was still in place to maintain the land.

According to a source, the logging operations that began in June may be carried out by a subsidiary of a company that is now part of a consortium entrusted with taking over the former pulp and paper estate.

“The timber has already been exported. I believe they are mostly exported to Sarawak. There is a barge to pick up the timber to transport it by sea,” said Jeffrey Gopog, a former SFI worker who still lives at the SFI housing quarters.

He said that the company in the timber activity is linked to one of the parties in the consortium.

The Sabah government has assigned a consortium reportedly to take over the SFI concession.

The concession’s land size stands at 288,233ha, comprising 276,623ha of forest reserve licensed by the state government and 11,845ha of titled land owned by SFI.

In September 2021, the SFI logging contract was terminated, and by November of the same year, SFI was ordered by the court to wind up its operations.

Chief Minister Datuk Seri Hajiji Noor had announced that the area would be handed over to the consortium for development.

The state has not come forward over its plan to redevelop the former estate but pointed out the consortium will comprise three entities: Yayasan Sabah and two other private companies.

He later announced that one of the companies awarded the land was owned by Tan Sri Syed Mokthar Al-Bukhary (Pelangi Prestasi).

It is understood the other private firm has been identified as Press Metal Sdn Bhd.

Additionally, Hajiji emphasised that the agreement would be cancelled if the consortium fails to commence operations within the stipulated two years.

Gopog had told The Vibes that around twelve of the former SFI workers have been hired by the company, where they are now appointed as security guards or office workers. – The VIbes, August 8, 2023

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