By Olivia Miwil - November 18, 2021 @ 4:47pm
PENAMPANG: The selection of the Singapore firm, Hoch Standard Pte Ltd, which recently entered a 100-year nature capital deal with the Sabah government is a "non-issue."
Sabah Deputy Chief Minister Datuk Dr Jeffrey Kitingan said concerns about the company's capability do not arise because it had been involved with similar work with other countries.
"The company is backed by several multi-billion Private Equity funds globally.
"I am told they are dealing with Indonesia, Australia and South America on monetisation of natural capital including carbon," he told a press conference after a hybrid dialogue with non-governmental organisations at Sokid Villa here today.
Jeffrey said the state government has taken note of all the concerns, including worries that the Sabah government was supposedly being conned by the company, which was an issue raised at an earlier dialogue.
He said the authorities accepted these critical opinions and it has made sure they were dealing with proper and capable people.
"If they (the company) do not deliver, there are two provisions: If the agreement is not being implemented within two years, it will be revoked; or if they do not perform, the government has the right to terminate it," he said, adding both parties would also go for mediation before a court should there be any issues.
The state government and Hoch Standard signed the Nature Conservation Agreement (NCA) on Oct 30, which would see the company receive 30 per cent of the shared gross revenue.
The NCA will involve up to 2 million hectares of existing forested areas in Sabah.
When elaborating on the deal, Jeffrey, who is Sabah Agriculture and Fisheries Minister, assured that the state government would still have authority on forests and state land, while Singapore law would only apply when it came to the carbon deal.
Earlier during the hybrid dialogue, participants from the floor questioned the validity and capability of Hoch Standard to take part in the deal, despite there being many other established companies that could do so.
Checks on the Hoch Standard's profile showed that the company was set up about two years ago with a paid up capital of US$1,000 (RM4,181) and without a proper commercial office in Singapore.
When responding to this question, Jeffrey defended the company by saying that in the digital age, a company can exist without offices and many staff.
He added the company would also be using artificial intelligence, satellite, other technologies as well as recruiting up to 5,000 rangers among locals as part of providing data and monetising the nature capita.
During the two-hour session, the NGOs had also expressed hope that the 100-year deal would be shortened or put on hold.
The NGOs also urged for natives to be included in the deal; and for a debate on the matter to be held at the state assembly sitting.
Jeffrey confirmed that the NCA would be deliberated in the next state assembly.
"It is our fault for not publicising about the deal earlier as we planned to make the announcement in January when it is more impactful.
"I am satisfied with what happened (in the dialogue), we are able to connect and understand each other. Whatever shortcomings, we have explained to them.
"The NCA issue will be discussed in the next state assembly sitting as there is a question on it raised (by an assemblyman)," Jeffrey added.
Comments
Post a Comment