15 Sept 2011

'Arrogant' Pahang govt condemned for ignoring court order

Harakahdaily   
 Sep 15: The Pahang state government has been described as "gangster government" by a PAS leader over its refusal to obey a court order to pay RM70 million in damages to a local logging company.
L-R: Adnan Yaakob and Khalid Samad
PAS Central Committee member Khalid Samad criticised Menteri Besar Adnan Yaakob for being "extremely arrogant" in disobeying the Kuantan High Court order to pay compensation to  Kuantan-based Seruan Gemilang Makmur Sdn Bhd over a breach of contract.

“The Pahang government is acting like a gangster violating the court order to pay damages to Seruan Gemilang," said Khalid.

He said the state government could be bankrupt and that could explain their refusal to pay.

"The federal government should pay up as it is the right of the shareholders. They only want their right, that was why they launched a hunger striker,” said the Shah Alam MP.

The damages amounted to more than RM37 million with eight per cent interest per annum from December 31, 2000, after the court fount in 2007 that the state government under Adnan was guilty of breaching a logging concession contract for extraction of timber logs from a 10,000-acre plot of a land belonging to UMNO in Mukim Bebar, Pekan.

Earlier this year, Seruan Gemilang's shareholder Lee Sin (right) lodged a report against Adnan and his assistant Shamsuddin Ibrahim, who is also Bentong UMNO chairman, for not fulfilling an agreement to allow logging at the plot of land, in exchange of taking over 10% of Shamsuddin's shares. Lee Sin said as a result, he had lost some RM300,000.

A group of 10 directors, investors and shareholders of Seruan Gemilang recently launched a hunger strike in Segambut to highlight their plight but to no avail, as the state government chose to ignore them. This was in spite of the fact that among them, some were hospitalised.

Khalid called on Adnan to be responsible as the case was widely publicised and tarnished the state BN's image.

“If Adnan does not want to be responsible, he should just resign,” he added.

The state government’s application for leave to appeal against the decision was also denied by the Federal Court.

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