KUCHING: Sarawak Oil Palm Plantation Owners’ Association (Soppoa) is appealing to Malaysian Anti-Corruption Commission (MACC) to unfreeze bank accounts of plantation companies and other businesses that are not related to logging.
Soppoa said this in responding to news report that more than 400 officers from MACC and various state government agencies had raided log ponds, sawmills and business premises across the state, with the freezing of banks accounts of companies and individuals amounting to RM560 million.
“On the freezing of the 375 bank accounts of companies and individuals, Soppoa was informed by its members that some of the bank accounts frozen had no links to logging whatsoever including plantation companies, educational institutions, hospitality business, and many other businesses across Sarawak.
“It appears that some of the companies’ bank accounts are frozen by reason of common directorship,” noted the statement.
The move has disrupted business operations and caused undue hardship to these companies, adversely impacting the chain of business partners, contractors and suppliers.
“It is unthinkable that action can be taken against companies not even remotely related to logging activities. The freezing of bank accounts will cause these plantation companies to face severe cash-flow strain in making payments to their contractors, suppliers including oil palm smallholders/farmers supplying fresh fruit bunches to the mills, and the salaries of employees and workers.
“If workers are not paid, fruits will not be collected which will result in losses to the companies, and loss of tax revenue to the government. Many oil palm smallholders are mainly Sarawak natives, and this state of affairs will dampen their enthusiasm to come home for Gawai in June this year,” it said.
Soppoa called for federal and state governments and MACC to unfreeze the bank accounts of oil palm plantation companies and other businesses unrelated to timber so business would go on as usual.
“The oil palm supply chain has always been one of the most transparent and tightly regulated businesses in Malaysia and has enjoyed good reputation internationally,” it said.
It said provisions under MACC Act and Anti-money Laundering and Corruption Act, allowing the freezing of bank accounts before any charge is made should only be invoked cautiously and sparingly.
“It has caused hardship to many innocent companies and individuals, especially employees and their families, and all stakeholders in the supply chain.
Soppoa therefore calls for MACC to deal speedily with the issues raised.