After almost seven years of  legal battle, the Federal Land Development Authority (Felda) was ordered by the Kota Baru High Court yesterday to pay RM1.2 million to 131 settlers of Felda Kemahang 1 and 2 for their tree-replanting needs.

The settlers had applied for assistance from Felda under the replanting scheme in 2001, but their application was disallowed. Following this, the settlers took the matter to court.

The decision was made by Justice Mohd Azman Husin, who also ordered Felda to pay dividends to the settlers, which are to be assessed by the court, for the funds the settlers had deposited under the tree replanting scheme over 20 years.

Justice Mohd Azman also ruled that the funds are to be given directly to the settlers without having them comply with a circular issued by Felda.

“The court found that the settlers’ relationship with Felda has been ended as they already owned the land and now they should be governed under the National Land Code,” the judge ruled.

NONE According to lawyer Wan Rohimi Wan Daud ( right in picture ), the settlers had opened up the land in the late 1970s.

From 1981 to Dec 31, 2000, they had channelled a portion of their income at RM4 per acre or RM56 a month to help finance replanting, he said.

“Under the existing scheme for replanting, settlers are required to surrender their land to Felda to take over and for Felda to appoint a contractor to replace the old trees with new ones. However, my clients do not want to do this as they would lose their source of monthly income, and on the other hand be burdened with debts if they take up the life maintenance allowances offered by Felda.

 

“My clients decided not to use this way but instead took their own intiative to plant new palm oil trees near the old ones, so they would grow and they would continue having a steady flow of income. They also tried to apply from Felda for funds under the tree replanting scheme but Felda did not approve it,” said Wan Rohimi.

In fact, Wan Rohimi said, Felda did not want to give assistance although they had approached Felda leaders, including its former chairperson Yusof Nor.

The lawyer said, following this, the settlers decided to approach us in filing a legal action.

He said the trial began in 2007, and 20 witnesses had testified.

“I am glad that Justice Mohd Azman agreed with our arguments and decided that Felda has to pay up,” he said, adding that Felda was represented by lawyer K Rajendran yesterday.

Felda Kemahang no strangers to controversy

Felda Kemahang in Kelantan is no stranger to controversy as Felda Kemahang 3 settlers had recently won RM11 million in awards following a landmark decision, when the Federal Court ordered Felda to pay the amount for allegedly cheating them by stating the grade of their oil palm fruit to be of a lower grade.

NONE This was after the Federal Court refused to allow a review of Felda’s application to challenge a similar Federal Court decision by another panel, which before this had dismissed Felda’s appeal.

The apex court decision meant the settlers are expected to receive between RM25,000 and RM30,000 each. This was the first suit filed by the settlers against the federal agency.

The landmark decision has serious repercussions for Felda and the government as it may open the floodgates to further suits. Felda is regarded as a backbone of the Malays and bumiputera community and a ‘safe deposit’ for BN.

NONE Felda is also facing several ongoing suits by settlers in Negri Sembilan, Pahang and Johor.

Chief Justice Zaki Azmi led a three-member panel on Jan 19, 2010, which unanimously ordered Felda to pay RM11 million to the 354 settlers in Felda Kemahang 3.

In dismissing Felda’s leave application, Zaki said the court was satisfied there was no part in law for the matter to be reviewed by this court.

“Following this, we uphold the findings of the High Court and the Court of Appeal and order Felda to pay the amount owed,” Zaki had said.

In the Felda Kemahang 3 case, the settlers were also represented by Wan Rohimi.