Pelangi Prestasi Sdn Bhd (PPSB) has been asked to hold mediation talks with the other parties involved in the dispute over the Sabah Forest Industries Sdn Bhd (SFI) deal. The other parties are Grant Thornton Consulting (GTC), the Receiver Manager of SFI and Sabah Government, which owns about 2% equity in SFI. 

High Court judge Datuk Ahmad Bache wants PPSB to look into the possibility of seeking an amicable solution for the benefit of all parties, including the 1,200-odd employees who are now uncertain of their future.

“I think this would be the best solution for all parties concerned,” Justice Ahmad said, adding that the court would look for a possible mediator.

It was very timely for the learned judge to call for mediation because a statement posted on PPSB’s website mentions that the employees of SFI have not been paid their June 2019 salary. PPSB was made aware of the non-payment of the June 2019 salary when the company was approached by SFI’s employees complaining about the non-payment. The same SFI employees also requested PPSB to find a solution to ensure timely salary payments in the future.

If GTC or the Sabah Government is incapable of fulfilling its financial obligations, such as monthly salaries and mandatory contributions to EPF and SOCSO to the 1,200-odd SFI employees, then they should seek an immediate recourse to alleviate employees’ burden.

If this matter is further delayed it would only cause much hardship and suffering to the SFI employees. Whilst the terms are being negotiated, it is also important that a provision is made for the employees to continue receiving their salaries until the mediation is completed.    

The good news is both the lawyers for PPSB for SFI/GTC, from the onset, have agreed to the Judge’s call for mediation. According to PPSB’s lawyer, the mediation would also require the involvement of the Sabah government. The Sabah attorney-general and the federal attorney-general would be invited to attend the mediation.

The PPSB statement also went on to mention that besides the civil suit, the company has filed for an injunction to stop the implementation of the new set of preconditions to grant timber licenses until the disposal of the suit.

It has also filed for a judicial review at the High Court in Kota Kinabalu, naming Sabah Chief Minister Datuk Seri Mohd Shafie Apdal and the state government as respondents to quash the decision to reject the issuance of fresh timber licences to the company. The company said the government’s imposition of entirely new conditions and decision to reject timber licenses was illegal and unreasonable and there was procedural impropriety.

Justice Ahmad then fixed July 18 to hear further submissions on the matter, and for a decision on the same day.  He also fixed the same day to hear further submissions on the injunction sought by PPSB.

The sad part is while the legal saga rages on, the employees suffer. And if this continues, people in the state will lose confidence in the Sabah government due to its inability to help employees in general.

So, sit down, discuss, work out your differences and arrive at a positive outcome to ensure a ‘win-win’ for everyone. 

For detailed story, click  https://www.theedgemarkets.com/article/judge-asks-syed-mokhtarlinked-firm-explore-mediation-dispute-sfi