Kota Kinabalu: The State Government has appointed Sabah Foundation as a local partner to implement the controversial carbon trading deal known as the Nature Conservation Agreement (NCA).
Sabah Deputy Chief Minister Datuk Seri Jeffrey Kitingan (pic) said that the state Cabinet endorsed the decision last Wednesday for Sabah Foundation to work closely with Singapore-based firm Hoch Standard Pte Ltd over the NCA.
“Hoch Standard will assist Sabah Foundation in this new role by providing the necessary technology and know-how to ensure the implementation of the NCA will be done accordingly,” he said.
“Sabah Foundation will sign a separate service agreement with Hoch Standard. Under the service agreement, Hoch Standard is expected to pay Sabah Foundation 5 per cent of its gross revenue from the NCA for the Sabah Foundation’s activities related to the NCA.”
It is believed that Hoch Standard will be paid some 30 per cent of earnings from the carbon deal.
Sabah Foundation is a state body that was set up to further educational opportunities for Sabahans but has since diversified into other economic investments and activities to boost its income.
The announcement by Jeffrey came after months of criticism and prolonged debate over agreement, among which were the appointment of Hoch Standard, a little-known firm with no known background in the carbon trading industry.
Environmentalists and conservationists were also concerned about the lack of information and transparency to the public over how the deal was put together. Jeffrey, the main proponent of the agreement, has repeatedly assured that the firm was legitimate and that the deal would benefit Sabahans as a whole.
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