KOTA KINABALU – Stan Lassa Golokin, the elusive figure linked to the controversial Nature Conservation Agreement (NCA), spoke at length at a briefing today, hoping to dispel misconceptions over the carbon trade deal.
In the three-hour session, Hoch Standard was introduced as a “start-up” special purpose vehicle specifically assigned to unlock the potential of Sabah’s “lazy assets”, which are its protected forests.
The NCA ostensibly protects two million hectares (4.9 million acres) of jungle in Sabah from logging for the next 100 years.
From the outset, the NCA gives 30% of Sabah’s revenue from carbon credit sales – estimated to be US$24 billion (RM100.3 billion) over the life of the contract – to a company in Singapore, Hoch Standard, with no obvious history in carbon trading.
Addressing claims that Hoch Standard had no experience in the carbon credit trade, Golokin, who is Hoch Standard’s global corporate adviser, said due diligence work over the NCA started somewhat in late 2018.
The board of Sabah Economic Development Corporation on March 6, 2019 approved a joint venture on nature capital projects with the Malta Digital Exchange, which Golokin purportedly was involved in.
A nature conservation project was initiated with Sabah Parks in 2020 and subsequently, the NCA was presented to the Sabah government in May 2021, which at the time was under the helm of the Gabungan Rakyat Sabah-led state government.
It was noted that it was during the Sabah Parks NC talks that Hoch Standard’s Dr Ho Choon Hou came in.
While the Sabah Parks NC did not take place, Golokin said the NCA was signed between Hoch Standard and the Sabah government on October 28, 2021.
Rebutting reports that Sabah Attorney-General Datuk Nor Asiah Mohd Yusof refused to sign or witness the signing of the NCA, Golokin revealed a photo where she was also present on the day of the signing.
Those present at the signing were Sabah Chief Minister Datuk Seri Hajiji Noor, Sabah Deputy Chief Minister Datuk Seri Jeffrey Kitingan, Sabah’s chief conservator of forests Datuk Frederick Kugan, and Nor Asiah.
At the briefing, Dr Ho, who is Hoch Standard’s project director and strategic funder, was also present for a short moment via the Zoom call.
In addressing claims that the firm had only a US$1,000 paid-up capital, the surgeon and businessman said he has already presented to Jeffrey and Sabah officials the evidence of funding and the monies required for the carbon trade deal to take off.
“Is Sabah our only target? Actually, we are now in active discussion also with Sulawesi, Western Australia, and East Timor.
“At no time, we have designed this SPV company specifically for Sabah, but just because Sabah is the first mover (of the NCA deal).
“The intent of course for Hoch Standard and its funders, including me, the sole funder at this point of time, I have been funding the working capital of the team, advisers, legal fees, etc.
“I think anyone can attest that no one could drive this NCA for only $1,000. If they are...I would be happy to talk to you,” he said.
Ho said joint venture companies would be established and necessary manpower hired in territories where Hoch Standard set up nature conservation projects.
However, he said Hoch Standard was not able to start work in Sabah yet because the specific coordinates for the designated areas have not been given to them since the signing of the NCA last year.
“Until we have that data, it is hard to specify what resources are needed for the data and to plan it out,” he said.
Ho said six international bodies have already expressed interest in working with Hoch Standard.
One of the companies have already amalgamated 1,800 individual owners into a half a million REDD Project.
On another note, Golokin said in contrast to the federal government having authority over the carbon credit, there’s a real possibility that Sabah is given special flexibility to sell their carbon credit.
He said in terms of legislation, there has not been definitive agreement in terms of the World Bank NDC Platform and therefore, Sabah has been given such privileges.
On the 100-year long-term conservation plan, Golokin said Sabah can exit the agreement with justifiable reasons and that the state can also exit the NCA if the project does not take off within two years.
He said an agreement was put in place to protect the stakeholders and off-takers of the NCA and therefore, exiting the deal will incur compensation.
“Besides, conservation is perpetuity. It’s not something that has a maturity date of 20 or 30 years.
“So the longer your conservation duration is, the better,” he said.
On the 70:30 revenue sharing on the NCA, Golokin said the technology component of the carbon trading is not cheap.
“The cost of the satellite alone for (surveying) could run up to RM10 million. Then there are also scientists involved. Paying their salaries is not cheap.
“70:30 is very equitable and fair. It is a very, very good deal for Sabah than the previous 51:49 formula during the Warisan-led government era,” he said.
Golokin also reiterated that Totally Protected Areas have already gone through the process of free, prior and informed consent as required under the state laws. – The Vibes, February 6, 2022
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