Pahang State for Sale

Pahang Government need to pay 60 millions to a logging firm due to breach of contract. Do they have money to settle this? or more or less Pahang state will be on sale soon...

Wednesday October 15, 2008 MYT 3:46:25 PM - The Star

http://www.thestar.com.my/news/story.asp?file=/2008/10/15/nation/20081015154408&sec=nation

Logging firm wants Pahang to pay RM60mil court award

KUANTAN: A logging firm, awarded RM60mil following a breach of contract by Pahang government, filed an application for a court order to compel the state government to pay the amount.

The company, Seruan Gemilang Makmur Sdn Bhd, represented by Messrs Peter Lai, Rajoo and Aiza, filed the application at the Kuantan High Court on Wednesday.

It named Pahang Mentri Besar as the respondent.

It involved a logging concession contract related to the extraction of timber logs from a 4,000ha plot of land belonging to Umno in Bebar, Pekan.

In its statement of claims, the company alleged that the Pahang government had failed or refused to pay the sum despite an order issued by the Federal Court on Sept 17 this year.

It was reported that the Pahang government was ordered to pay the firm after failing in its final bid for leave to appeal.

Chief Judge of Sabah and Sarawak Tan Sri Richard Malanjum, who had sat with Federal Court judges Datuk Nik Hashim Nik Ab Rahman and Datuk Abdul Aziz Mohamed, had unanimously dismissed the leave application made by the state government and state forestry director.

Justice Malanjum in his judgment had said the question of law submitted by the Pahang government, represented by its legal adviser Datuk Mat Zaraai Alias was not a noble question and had been raised at the Court of Appeal.

The applicants had sought leave to appeal an Aug 3 decision of the Court of Appeal which rejected their appeal for extension of time to file the notice of appeal.

They wanted permission to appeal against the Kuantan High Court decision on May 25 last year which ordered them to pay RM37,127,471.60 to Seruan Gemilang Makmur with an annual interest of eight per cent dating from Dec 31, 2000.

The High Court made the order after ruling that the state forestry director was negligent in refusing to use the latest plan submitted by the company which was approved by the state executive council on April 5, 2000, and, instead, ordering that the original plan which was approved on Jan 7, 1997, be used.

On Dec 9, 2002, Seruan Gemilang filed a suit against the Pahang government and the state forestry director, seeking RM31mil in damages for breach of contract.