Controversial Nature Conservation Agreement not enforceable for now, says Sabah AG

 By Olivia Miwil - February 10, 2022 @ 10:47am

In a statement, Sabah Attorney-General Datuk Nor Asiah Mohd Yusof said the state government had signed the agreement in Oct last year on the condition that it was non-binding and subject to several matters. - Pic credit Facebook Nor Asiah Mohd Yusof.

KOTA KINABALU: The proposed Nature Conservation Agreement (NCA) is legally impotent and cannot be enforced, said Sabah Attorney-General Datuk Nor Asiah Mohd Yusof.

In a statement, she said the state government had signed the agreement in Oct last year on the condition that it was non-binding and subject to several matters.

Among them are the further due diligence in the satisfaction of the state AG and the cabinet; all unfair and absurd contract terms are removed; identification and obtaining of free prior informed consent from affected native communities; and the identification of the designated areas.

"The state cabinet has approved carbon trading in principle. As it relates to the proposed NCA, finalisation is subject to strict deliverables and the execution of the addendum.

"The NCA is therefore not finalised nor is it binding because, among others, the designated areas- which are the subject matter of the NCA- has not been ascertained nor identified.

"Until the designated areas are ascertained and incorporated, each and every term, condition and penalty in the proposed NCA is rendered non-binding and unenforceable," she said, adding some reports saying that the agreement is in force are inaccurate.

Apart from the areas, issues that remained unresolved are the development of a Nature Conservation Management Plan, consent from the native communities, carbon pricing and price discovery mechanisms agreeable to the state, independent oversight of the implementation of the NCA, and a satisfactory due diligence report of Hoch Standard's representations and capability among others.

"Notwithstanding the several representatives made by Hoch Standard- that they have access to financial networks and are capable of funding and realising the objectives of the NCA- the state government calls for a more in-depth due diligence process which was initiated by the state AG.

"The Sabah Climate Change Committee (SCAC) and its advisory committee will assess and advise the cabinet on all matters related to the NCA.

"SCAC will lead a multi-party dialogue with all stakeholders where representations from across all political factions in Sabah will be called upon."