Felda labs 'barring tests', settlers file suit

Settlers wanting to independently test the oil extraction rate (OER) of their oil palm have claimed that laboratories belonging to Felda and other plantation firms have turned them away.

But they have struck back, filing a civil suit in the Kuantan High Court today against Felda as first defendant and Felda Palm Industries Sdn Bhd as second defendant for “fraud and breach of trust”.

Lawyer Sivarasa Rasiah, representing 957 settlers from Felda Kratong, Rompin in the suit, said they have been turned away since a civil suit was filed by Felda Jengka settlers in mid-2011.

“They have taken their fruits to Felda's laboratories, Sime Darby's as well as independent laboratories but these have refused to test the fruits. My clients have lodged police reports on this,” he said when contacted.

He said the laboratories did not give a reason for their refusal to test the fruits.

As such, the settlers are seeking court assistance, through a RM525 million law suit - the largest claim to date by settlers.

“Through the writ of summons and the process of discovery in court, we will obtain the exact production figures for all the other schemes involved here, to compute the exact loss over the claim period to the settlers,” he said.

Gap in extraction rate

Sivarasa said the damages sought are based on OER test results conducted by Felda Jengka.

The settlers’ claims have been backdated to 1995, when they entered into a contract to exclusively sell their yield to Felda Palm Industries.

Sivarasa said the settlers were paid for an average OER of 18.5 percent for the past 17 years, which is far lower than test results on Felda Jengka fresh fruit bunches.

Random tests on Felda Jengka fruits have shown that the average OER was 27 percent, he said.

“The (Felda Kratong, Rompin) settlers suspected something was amiss when they realised that they could never match the rate recommended by the Malaysian Palm Oil Board, which is at least 22 percent,” he said.

Felda is facing a string of civil suits by settlers, including a RM422 million suit filed last April in Prime Minister Najib Abdul Razak’s constituency of Pekan.