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Sabah farmers’ body wins RM1 million debt repayment
Published on: Saturday, May 11, 2024
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Sabah farmers’ body wins RM1 million debt repayment
Arbitrator from LPP Malaysia, Hyder Jaleel Gafoor Abdul Rasheed, made the decision after examining the documents and hearing evidence and arguments from both sides for Nafas to settle all debt claims to PPN Sabah.
Kota Kinabalu: The Sabah State Farmers’ Association (PPN) won a debt repayment worth more than RM1 million against the National Farmers’ Association (Nafas).

The Arbitrator of the Registrar of Farmers’ Organisations (PP), in his session on Tuesday (May 7) at the Sabah Farmers’ Organisations Board (LPP) office, decided the matter after hearing arguments from both sides.

Arbitrator from LPP Malaysia, Hyder Jaleel Gafoor Abdul Rasheed, made the decision after examining the documents and hearing evidence and arguments from both sides for Nafas to settle all debt claims to PPN Sabah.

The debt claims include transport services, warehousing works, warehouse rent and utilities as well as Flood Kit supply claims.

The Sabah State Farmers Organisation (PPNS) was represented by its Acting General Manager Ruddy Hasmawie Mohamad, who acted as chief, with Agricultural Business Manager Anizam Edrus and Asset Manager Sanuddin Abdul Rahman.

Nafas was represented by its Deputy General Manager Saripol Baharin Karim, who acted as the chief, Senior Manager of the Farmers Development Group Mohd

Hafizul Ridhuan Abd Wahab, Senior Manager of the Fertiliser and Chemical Input Business Group (KPIBK), Alias Abdul Rahman, Assistant Manager Muhd Al Aprinuddin Hisyamuddin, Assistant Manager of the Legal Division who is also a Nafas lawyer, Azliana Zaharuddin, Executive of the Procurement Division, Noor Nadia Mohamed Isa, Acting Manager of the Corporate Communications Division, Noor Farizan Abdul Kadir, and Executive of the Finance Division, Hamdin Zariff Hamzah.

The PP Registrar Arbitrator also ordered Nafas to pay the debt to PPN Sabah on a monthly basis over six months and the payment no later than the 7th of each month.

During the arbitration, KPIBK Nafas Senior Manager Alias Abdul Rahman confirmed that for the current period the transportation and warehouse rental works in the state of Sabah are carried out by Syarikat TS Top Logistics Sdn Bhd with appointment by Nafas through direct negotiation. 

This matter is reviewed as one of the basis of consideration in the arbitration.

PPN Sabah requested a debt claim against Nafas to be heard by the PP Registrar Arbitrator on Nov 22, 2023, after Nafas refused to pay the arrears. 

Before that, PPN Sabah repeatedly requested for the payment to be settled, so that PPN Sabah had to take action to make a report to the Royal Malaysian Police (PDRM) and the Malaysian Anti-Corruption Commission (MACC).

The Director General of LPP Malaysia, Dato’ Azulita Salim, on Jan 8, 2024 informed the Chairman of the Board of Directors of PPN Sabah that fertiliser stored in the warehouse rented by Nafas from PPN Sabah belongs to the Federal Government to be distributed to rice farmers.

Therefore, trading the fertiliser for any purpose is “prohibited” and advised PPN Sabah to be careful.

Acting General Manager of PPN Sabah, Ruddy Hasmawie Mohamad, said the fertilisers are still stored in the warehouse rented by PPN Sabah and allowed to be taken back only after the debt claim is fully settled by Nafas.

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