Malaysia

Company sues Pahang for more logging land, claims RM79 mil lost in revenue

Some tracts previously approved by Forestry Dept located near rivers cannot be worked on

Updated 4 years ago · Published on 13 Jan 2022 7:00AM

Company sues Pahang for more logging land, claims RM79 mil lost in revenue
Upayapadu (M) Sdn Bhd claims that the Pahang Forestry Department has agreed to award the company land to replace those affected by buffer zones. – Pixabay pic, January 13, 2022

by Arjun Mohanakrishnan

KUALA LUMPUR – A company that has held a logging concession in Pahang for four decades is now taking the state government and Forestry Department to court to seek more jungle land to perform its activities.

In a suit filed on December 27, around a week after floods devastated parts of Pahang, logging company Upayapadu (M) Sdn Bhd stated that parts of forest land approved for logging by the state Forestry Department could not be logged as it is located in the vicinity of rivers.

Forest areas near rivers are not allowed to be logged as they are considered buffer zones.

A table from the statement of claim, which details the total replacement land granted to Upayapadu (M) Sdn Bhd as of 2013. – Screen grab pic, January 13, 2022
A table from the statement of claim, which details the total replacement land granted to Upayapadu (M) Sdn Bhd as of 2013. – Screen grab pic, January 13, 2022

“Around 15% to 20% of the forest land approved are affected by the rivers, resulting in the area not having enough acres,” the statement of claim by Upayapadu read.

Nevertheless, Upayapadu claims that the Pahang Forestry Department has agreed to award the company land to replace those affected by buffer zones.

Upayapadu contends it is the duty of the state Forestry Department to grant replacement tracts of land, which are the right of the company as logging was approved and premiums paid.

In 2007, the state government via the Forestry Department agreed to award Upayapadu replacement land for the areas affected by buffer zones.

“The approvals were to replace the areas in buffer zones allocated to the plaintiff (Upayapadu) and were supposed to begin in 2005,” the statement of claim added.

The Pahang government approved over 2,000ha of land up until 2013.

After logging works in 2014 and 2015, in which Upayapadu logged over 3,900ha of land, it found another 628ha in buffer zones that could not be worked on.

To claim more replacement land, Upayapadu in 2016 and 2020 sent letters to the Pahang Forestry Department with its demands for an additional 624.43ha, but received no reply.

Upayapadu (M) Sdn Bhd claims that it lost the opportunity to reap revenue from logging estimated at RM79,968,340. – Screen grab pic, January 13, 2022
Upayapadu (M) Sdn Bhd claims that it lost the opportunity to reap revenue from logging estimated at RM79,968,340. – Screen grab pic, January 13, 2022

Upayapadu sent a letter last March, to which the Pahang Forestry Department replied with a letter to the company in May denying its request.

“The plaintiff was shocked with the contents of the May letter, because Upayapadu believes that the receipt of replacement land to replace the buffer zones is a right of the company based on an approval obtained in January 2007, and it is the duty of the state government and Forestry Department to replace it,” the statement of claim added.

Last October, Upayapadu sent a letter of demand to the state government and Forestry Department to claim its total 1,252ha of replacement forests, and again received a denial causing the company to label both parties as acting in bad faith.

It also claims that it lost the opportunity to reap revenue from logging estimated at RM79,968,340.

Upayapadu now seeks a declaration that it has a right to 1,252.43ha of replacement land or alternatively damages valued at RM79,968,340. – The Vibes, January 13, 2022

Related News

Malaysia / 2w

Pahang hospitals test drones to deliver blood samples

Malaysia / 3w

Pahang police reject claims of drug cartel operating in Genting Highlands

Opinion / 1mth

Orang Asli in Pahang: Token gestures or genuine recognition?

Malaysia / 4mth

Private Amirul's death: Police have called 16 witnesses

Malaysia / 5mth

Be patient, exercise caution when driving home for Aidilfitri - Pahang Sultan

Malaysia / 7mth

Doctor loses RM285k in phone scam

Spotlight

Malaysia

MP calls on US to take legal action against Hadi over ‘plot to topple government’ statement

By Ian McIntyre

Malaysia

Malaysia needs to master its own technology - PM Anwar

Malaysia

RM2.48m lost daily to investment fraud syndicates since 2023

Malaysia

Rising bond rates are a sign of rising debt

Education

Selangor to close schools if API readings exceed 200

Malaysia

Loke: Keep Anwar as PM to complete reform agenda

Malaysia

Investigations into political leaders not driven by spite or political payback - PM

You may be interested

Malaysia

Budget 2027 may bring new relief for squeezed M40

Malaysia

Zahid defends ministry, rejects all claims of financial recklessness

Malaysia

PM warns fertiliser firms of potential contract cancellations, orders MACC review

Malaysia

Plot to topple government: Probe not only Hadi, but Takiyuddin and Samsuri also, says Rayer

By Ian McIntyre

Malaysia

ISIS surveillance of top Malaysian policemen: A massive red light on persistent extremism

Malaysia

Penang’s Air Itam-Tun Dr Lim Chong Eu bypass nearing completion

By Ian McIntyre

Malaysia

Melaka CM hints at state assembly dissolution being ‘two Fridays’ away

Malaysia

RM2.48m lost daily to investment fraud syndicates since 2023