The suit was filed by Mega Forest Plantation Management Sdn Bhd, Megafores Nursery Sdn Bhd, Mega-Forestindah Paya Sdn Bhd, Mega-Foresternak Sdn Bhd, Megaforest Ideal Feed Sdn Bhd and Mega Forest Plantation Management Sdn Bhd.
Aside from the state government, it also named Selangor Agricultural Development Corporation (PKPS), the state forestry department, Trieco Green Sdn Bhd and General Gadget Solution Sdn Bhd as the defendants.
The suit involves a total of 10,000ha of forest reserve land at Rantau Panjang and Bukit Tarek in Hulu Selangor.
In a statement, Mega Forest said the suit was filed because the state government’s subsidiary company had terminated a joint venture agreement with the reason that their investment was invalid as it did not obtain the finance minister’s approval in 2001.
The company questioned why the matter had only been raised now and why the legal necessity had not been checked by the state government’s legal advisors at the time.
“The state government’s actions are alleged to be as though planned in order to chase investors away after millions of ringgit have been spent on the costs of replanting the forest reserve area.
“This matter clearly involves the integrity and governance of the Pakatan Harapan (PH) state government,” it said.
It claimed that the state and forestry department had seized the leased area despite the investment being made invalid due to an enactment violation by PKPS, adding that they had made profits off the Sentang, rubber and oil palm trees planted.
It added that the trees that have been cultivated for the past 20 years had an estimated market value of RM345 million.
“In fact, the forestry department was found to have given new permits for a part of the same land to two new companies with a paid-up capital of RM3 and RM2 only,” it claimed.
“One of the companies appointed as a subcontractor is also a firm that sells telecommunication devices, which is doubted to have any experience in forestry.”
The company said it had tried to resolve the matter with the state government but its requests had been rejected while the forestry department issued an eviction notice to the companies in the joint venture.