Receivers fail in bid to stop state taking back 13,000ha SFI land

KOTA KINABALU: A legal bid by the receivers of the now defunct Sabah Forest Industries Sdn Bhd (SFI) to stop the state government’s acquisition of 13,000ha of the company’s land failed at the High Court here.

Judicial Commissioner Amelati Parnell turned down an application by Thornton Consulting (Malaysia) Sdn Bhd – the receiver and manager for the bankrupt SFI – to obtain an injunction and stay order against the state government.

She said the ruling is in line with the principle that no injunction can be granted against the government as the decision in the case of Lim Kit Siang remains as the authority for the principle.

However, Justice Amelati granted leave to hear Grant Thornton’s allegation that the Sabah government’s acquisition of the former SFI lands was done mala fide (in bad faith).

In a brief ruling on Friday (Nov 24), Justice Amelati also held that the Sabah’s government’s acquisition of the former SFI lands was “already conclusive and complete”.

The court also turned down a stay application of the state government’s eviction notices for the employees as they did not have a right on the land as they were unlawful occupants when the acquisition became conclusive.

Following the ruling, Sabah government counsel Tengku Datuk Fuad Ahmad said on Sunday (Nov 26) that it was a very encouraging ruling because it clearly states that Grant Thornton are trespassers and that the Sabah government’s acquisition is complete and conclusive.

He said that this means that Grant Thornton, its staff and agents must vacate the land immediately and added that this is to make way for a Sabah government scheme in Sipitang.

Fuad then added that what is being implemented in Sipitang is the Sustainable Forest Timber, Utilisation, Processing, Management, Conservation Research and Development Scheme.

“Everyone deserves their day in court. And now Grant Thornton will have that opportunity too but without further interfering with, disrupting or hindering the Sabah government’s efforts to bring development to the people of Sipitang,” added Fuad.

Grant Thornton was represented by S.Vanugopal and Jeyan Marimuthu.