reply from sabah forestry department director, datuk sam mannan on

REPLY FROM SABAH FORESTRY DEPARTMENT DIRECTOR, DATUK SAM MANNAN ON SARAWAK
REPORT: CONCESSIONS FOR SABAH FORESTRY DEPARTMENT’S SPECIAL STAFF MEMBERS
1. Allow me the opportunity to reply on these malicious allegations that appeared on 1 st February
2015.
2. Signboards and Sinages
It is the culture of the Forestry Department to name particular places on the basis of outstanding
work initiated by staff members either individually or on a collective basis as a team. This also
applies to foreign scientists and experts who have helped to make a difference. They are of historical
value and are placed to appreciate and record the creativity and energy invested by the people
concerned to improve the department’s performance or to improve landscapes and holdings. Some
examples are:
(1)
Jalan Masirom (Deramakot) – the late Masirom Rundi a silviculturist, initiated large scale
silviculture in Sabah, particularly in Deramakot.
(2)
Dr Michael Kleine’s compartment – this is a compartment at Deramakot under Ril
(Reduced Impact Logging) followed by forest tending. He was with the German GTZ
(Technical Co-operation Agency) in Sabah, as team leader, who assisted the department to
employ modern forest management, resulting in the certification of Deramakot under the
FSC (Forest Stewardship Council) in 1997.
(3)
Jalan Heuveldop (Deramakot) – Dr Jochen Heuveldop was the first GTZ team leader
involved in Deramakot’s planning in 1989.
(4)
Domingo Chai’s Management Trail – the late Domingo Chai, who retired as Deputy –
Director, was the Sabah counterpart involved in the preparation of the first Forest
Management Plan for Deramakot in 1995. He introduced new silvicultural and forest
management regimes such as the selective Malayan Uniform System, for silviculture, still
practised in Sabah until today.
(5)
Grove of Rain Trees Planted At The Forestry Department Headquarters, In 1982 by
Datuk Abdul Rahim Ismail, the former District Forestry Officer, Lamag.
This is the first signboard at the junction of the entrance of the Forestry Headquarters. The
magnificent trees, now over 32 years old of massive girth, were planted by Datuk Abdul
Rahim Ismail.
(6)
Mag’s Garden
I directed my secretary, Magdelina Maikas, an avid gardener, to design and supervise the
re-vamping of the Forestry HQ gardens, somewhat moribund and unchanged for (30)
years, due to neglect and the impoverished soils. This work which she supervised took not
less than (12) months of daily work, to complete.
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(7)
Hormat Jadi – this company partially financed the revamping of the gardens and thus its
contribution to society was similarly appreciated by a simple belian signboard at the front
of the HQ building.
I also note that at Central Park, Manhattan, people who have contributed in kind or
in cash, are celebrated vide simple sinages, including at the benches.
The placing of people’s names on signboards is therefore not a new phenomenon but a
culture built up over many years to record our appreciation to those, who have made a
difference.
(8)
Other Sinages At The New Forests Established At The Drainage and Irrigation Reserve
Bordering The Forestry Department HQ
My planting team, had their names or places of origin, commemorated by simple sinages
on bridges, walkways etc. This is now a thriving forest.
3. Timber Licences and Mosaic Concessions Allocations For TSH/Rinukut
The said area in question, within Kalabakan-Gunung Rara Forest Reserve, is a repeatedly logged
forest set aside originally for an Acacia Plantation, degraded and devoid of commercial trees.
This area covering 5000 hectares, is part of the Benta Wawasan Licence, owned 100% by the Sabah
Foundation, which in turn, is 100% owned by the Government of Sabah. The Licence Agreement
was issued in 1996, for 100 years, covering the current area of about 150,000 hectares specifically
now managed for Agro-Forestry Development, with oil palm as the main crop.
The land use was switched from Acacias to oil palm in 2003, under my predecessor, a correct
decision, for the purpose of maximising returns from lands set aside for conversion, so that
conservation efforts could be expanded and financed in more important areas through the profit
from oil palm, the 5% royalty imposed on fresh fruit sales and the 7.5% sales tax on crude Palm Oil
(CPO).
The accusation that the TSH Group or Rinukut was given a concession/Licence over these 5000
hectares or other areas, does not arise because the area is already licenced to a fully owned State
Agency since 1996.
There are no mosaic-plantations allocated in the Benta Wawasan area to TSH or Rinukut. TSH
Resources Berhad, nevertheless has a Forest Management Licence Agreement, given in 1997 in Ulu
Tungud Forest Reserve, by the State Government, which has no relationship whatsoever with the
Benta Wawasan area.
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At the same time, Sinora Berhad, now known as Innoprise Plantations Bhd., a publicly listed
company, has a contractual agreement with Benta Wawasan Sdn Bhd, the licencee, to manage about
22,000 hectares of agro-forestry land, in Gunung Rara Forest Reserve, to be developed for oil palm.
The net area for planting is about 12,000 hectares, with the balance left for natural forest
management and silviculture. Innoprise Plantations, which is majority owned by Yayasan Sabah
(51% or so), is also partly owned by TSH Resources Bhd as a minority shareholder but has lent its
management expertise by being invited to manage the 12,000 hectares of oil palm on the basis of
its excellent track record on managing oil palm plantations with good governance and high
productivity. It is reputed that they achieved one of the highest yields of FFB in Malaysia in 2014.
The management of TSH of the plantation is a pure commercial decision of the Yayasan Sabah
Group and is not within the purview of the Forestry Department.
4. Mount Magdalena
This is the name of a mountain amongst, 3 mountains in Tawau Hill Parks, formerly known as Tawau
Hills Forest Reserve, which are Mt Magdalena (1310m), Mt Lucia (1189m ) and Mt Maria (1067m).
The name of my secretary is Magdelina Binti Maikas – not Magdalena.
Earlier to this re-classification, the buffer forest reserves bordering Danum Valley was also re-named
Mt Louisa Forest Reserve, as recommended by my technical team, to reflect the ranges of Tawau,
albeit a slight variation in name. The highest peak East of Maliau and West of Danum-Ulu Segama,
is Mt Magdalena, according to my experts, and thus their recommendation.
The only forest reserve to my knowledge, named after a Forestry Staff is VJR Timbah ( Virgin Jungle
Reserve Timbah ), in Tangkulap, to commemorate the late Timbah’s expedition in the area. The
new reserve is therefore named after a mountain and not a person.
5. Rinukut, TSH And The 5000 Hectares of Oil Palm Development
TSH or Rinukut have not been allocated with any concession or Licence Agreement in Kalabakan.
Rinukut, in collaboration with the TSH group, proposed to be appointed as a contractor to develop
part of the 150,000 hectares of oil palm land, to the Yayasan Sabah Group, on joint-venture basis.
Rinukut Sdn Bhd is owned by Bede Maikas and spouse, who have a track record in forest
management operations principally, silviculture covering forest reserves. Bedi Maikas, a former
silvicultural technician with the Forestry Department, and thereafter with SFI, has been in the forest
management business for a good ten years. Bedi Maikas first provided silviculture services for FMU
Licencees and thereafter, sought and obtained silvicultural contracts, approved by the State
Government, covering important forest reserves such as: Timimbang-Botitian, Tangkulap, and
Northern Gunung Rara. Due to his hands on experience, silviculture tending was carried out
efficiently, effectively and on time.
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As a consequence, Bedi Maikas (Dusun – Christian), with 3 other Native Forest Management
Contractors, Hussin Ahmad (Bruneian – Muslim), Haji Talip Bidin (Bajau-Muslim), and Sani Ramitan
(Dusun-Christian), were awarded with the “Kampong Tawkeys” certificate by the Chief Minister, for
exemplary entrepreneurial performance by Native Contractors, in a ceremony at the Heart Of
Borneo Conference in 2013.
All (4) contractors are ex-Forestry Department Staff and all have relatives in the Forestry
Department at one time or another. We promote all natives on the basis of performance.
While continuing his work as a Silviculturist Service Provider, Bedi Maikas, through Rinukut Sdn Bhd
in partnership with the TSH Group, applied to be appointed as an oil palm Contractor / partner with
the Yayasan Sabah Group, to develop a tract of 5000 hectares of agro-forestry area.
Given that it is the government’s policy to promote Native (Bumiputra) participation in all aspects
of economic development, including agriculture, the Yayasan Sabah Group, approved the proposal
with no more and no less conditions, that apply to other contractors/partners – e.g. 60:40 equity
(Contractor / Yayasan Sabah), investment to be borne by proposer etc.
Further to that, having a partnership with the TSH Group, given their track record, and experience,
the proposal was assessed favourably.
Likewise, the allocation to Rinukut/TSH partnership to be the contractor developer, is purely a
business decision, made by the Yayasan Sabah Group, to accelerate the development of lands,
earlier set aside for conversion, to sustain socio-economic development and finance conservation.
The role of the Forestry Department is to supervise the management of the area, to ensure that all
best practises are complied with. At the time that the Rinukut/TSH proposal was assessed by the
Rakyat Berjaya Sdn Bhd board, I voted in favour with the rest of the board members, on the merit
of the case, not because, Bedi Maikas happens to be the brother of my secretary, a biological reality,
to which, I am no party to.
(6) Degraded Forests Made Into Protected Forests
The most degraded forests are in the lowlands. Despite their condition, they still harbour valuable
bio-diversity, particularly wildlife. The Royal Society for one, puts a priority on conserving and
restoring lowland secondary forests, and considers them as one of the most important forests left
in Sabah and Borneo.
Degraded lowland forests are being tended and restored in the larger landscape of Sabah –
Northern Gunung Rara, Northern Ulu Segama, Southern Deramakot etc.
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It is of huge scientific value to turn even degraded lowland rainforests into totally protected areas
(TPAS) rather than to allow them to be converted.
(7) The Family Atmosphere In The Forestry Department
It is in the best interest of leadership to ensure that an organisation, including a government
department, is run on the basis of a cordial relationship, friendly and in a caring manner, which is
government policy. I am close to my team, from my Deputies, down to the labourers who hold the
cangkul, including my secretary. Magdelina has been my secretary for 26 years, my driver Jamirshah
for 27 years, my Administrative Officer for 20 years, my Amah for 35 years and my team of experts,
for no less than 15 years. Closeness does not mean abuse of the system.
In awarding concessions, I have no power whatsoever. Not even the Right Honourable Chief
Minister, with due respect, has this power. No Concession or Licence was ever awarded to Rinukut
or TSH. This is an outright lie, expanded to inflict maximum assassination of my character and in
the process, hurl abuse on those in my team.
I have lived a privileged life since birth. With the Grace of the Almighty God, it is therefore my duty
to show in the best way possible, graciousness and kindness and foster a family atmosphere with
caring being paramount.
In my family, workers stay to work for life unless they want to leave on their own accord. Similarly,
the team in the department, must be likewise glued, where respect is earned and not demanded.
The innuendos and insinuations are so damaging and sickening orchestrated for Maximum Abuse.
The motivation ? Misguided purported love for Sabah’s forests ? Jealousy ? Axe to grind? Revenge
? Loss of timber contracts ? Personal grudge ? Loss of employment ? Sacked ? Hatred ? Prejudice
against Dusunic people who should not be allowed to be successful ? Lunacy ? or all of the above
?
8. What the Sarawak Report Purposely Left Out ? The Remarkable Achievements Of The
State Government Of Sabah And The Forestry Department In Attaining Good Forest
Governance
(i)
The progress towards widespread good forest governance only came about after
political stability was established in Sabah and the appointment of the current Chief
Minister, Datuk Seri Panglima Musa Haji Aman in 2003.
(ii)
The achievements of the Forestry Department are recorded in the Annual Reports,
available in our website.
(iii)
For the sake of brevity, let me highlight the major achievements:

Totally Protected Forest (TPAs) – the extent now covers over 1.5 million hectares
of the land area or some 22% of Sabah. The government policy has been launched
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to achieve 30% TPAs by 2025 or 2030 at the latest or over 2.2. million hectares of
Sabah. Which state in this country has set aside 22% of TPAs including rich
agricultural lands and virgin forests at high opportunity costs?

Forest Restoration, Silviculture and Growing New Forests – as of 31.12.2014,
over 500,000 hectares of Sabah’s forests have been treated under natural systems,
rehabilitated planted with indigenous species and the establishment of tree
plantations. Most of this occurred over the last (10) years.

Independent Third Party Auditing – this has been ongoing since 2009 and
extended further for another (5) years at considerable cost to the State
Government, of at least USD $1million/year. Through this independent auditing,
performance of licensees is improved and abuse of licence conditions, acted upon
and rectified quickly. We were not pushed to implement 3 rd party auditing – we
did it on our own initiative.

TLAS (Timber Legality Assurance System) – this is in collaboration with the
European Union although the agreement has not been finalised at the country
level. The purpose is to ensure, all timber produced and exported from Sabah, are
of legal origin.

Community Forestry Issues and Communal Titles – The needs of communities
are not neglected in forest management. Community compartments are set aside
to meet their needs, including the provisions of clean water and management
contracts for forest restoration and rubber planting in selected areas.
The Mangkuwagu Forest Reserve and Kelawat Forest Reserve are (2) of many
outstanding models. At the same time, land titles are given on a communal basis,
to ensure natives will never lose ownership and their lands developed with
government funding. This is a Sabah pioneering project.

Phasing Out of Short Term Forest Licences In Forest Reserves
Such Licences of the past do not address sustainability and have been phased out.
Whatever remains, in small numbers, cover mostly non-forest reserves, statelands
and alienated lands. This policy has been enforced for (10) years.

Reduced Impact Logging (Ril) Of Dipterocarp Forests In Natural Forest
Management (NFM) Areas
Ril was pioneered in Sabah and is standard operating procedure for NFM areas, on
a state wide scale. This has reduced logging damage by at least 50%. Who else
does it on this scale ? We have been directed by the Federal Government to
“patent” Ril.

Engagement and Collaboration With The World
We acknowledge that we do not have a monopoly over good ideas or resources.
Thus, we engage with the world openly. Our partners include: WWF-Malaysia, Leap,
an NGO, TNC (The Nature Conservancy) of the USA, The US Embassy, The Abraham
Foundation of New York, ISME of Japan, The European Union (EU), The Royal
Society since 1985 and to be extended for another (5) years from 2015, Sime Darby
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Foundation, individual environmental philanthropists etc. The GEF-UNDP project
oversees the development of the agro-forestry area, in Kalabakan, including the
TSH-Rinukut block of 5000 hectares. We also had various privileges to be present
at the Rio+20 Conference as guest invitees and to make presentations, guests of
the TNC, New York etc. to present our point of view.

FSC Forest Certification
Tropical Forest FSC Certification was pioneered in Deramakot in 1997, the first
in the world. Since then, our partially and fully certified forests, mostly FSC, have
now exceeded 800,000 hectares. Another 200,000 hectares are identified for full
FSC certification in 2015.

RSPO Certification For Oil Palm In The Agro-Forestry Areas and Forest
Management Certification
Notices have been issued for this policy to be achieved on a Licencee by Licencee
basis and deadlines will be followed through. As a start, all agro-forestry lots are
mandated to be RSPO certified by 2017.

Awards Received By The Forestry Department In 2014
In 2014 alone, we received various awards including:
(1) The most prestigious and coveted award: The Chief Minister’s award for
Innovation and Excellence with a price money of RM200,000.00. In short, we
were rated the best organisation in 2014 with the government.
(2) The State Government Website Award.
(3) The State Government Record Keeping Award.
(4) The Auditor – General’s 4 Star Rating Award on Accountability Index.

Much Reduced Illegal Logging and Encroachments
Save for poaching which is being addressed, illegal logging and encroachments are
no longer major problems. They do occur from time to time but are sporadic in
nature. The Forestry Department is therefore not Fools!!!
9. CONCLUSION
This reply has been an arduous task. However, it is my belief that the public at large must have the
right to know the truth. I vehemently deny that I have any interest before, now or in the future, in
the company Rinukut Sdn Bhd and its ventures.
It is a private company, not owned by me or by my family members. InsyAllah, this clarification will
be graced by the Almighty.
Thank you.
Sincerely
DATUK SAM MANNAN
Director, Sabah Forestry Department