Sarawak Economic Development Corp defends purchase of cattle property in Australia

KUCHING: The Sarawak Economic Development Corporation (SEDC) has defended its purchase of the Carmor Plains cattle property in Australia's Northern Territory as a strategic investment to complement its existing Rosewood Cattle Station in Western Australia.

SEDC chairman Tan Sri Abdul Aziz Husain said Carmor Plains would be used as a new feeding and fattening centre for the 32,000 cattle at Rosewood Station.

Carmor Plains' close proximity to Darwin would also make it easier for full-grown cattle to be shipped for export, he said.

"We think Carmor Plains is a fantastic buy for us. Because of that, we'll be able to expand our operations by increasing the number of breeders at Rosewood and fattening them in Carmor Plains.

"We estimate that we can make A$1mil (RM2.9mil) more this year because we have Carmor, on top of what we have already made in Rosewood. Last year we made A$2.5mil (RM7.26mil) (in profits) from Rosewood," Abdul Aziz told a press conference here on Tuesday (May 28).

On May 23, Pending assemblyman Violet Yong had demanded SEDC reveal the full details of its investment in Carmor Plains or she would go knocking on their doors.

She said Australia's ABC News had reported on May 22 that SEDC paid A$20mil (RM58mil) for the property, which was settled this month, and that some top end cattle industry players were surprised by the price tag as it sold for A$2.8mil (RM8.13mil) in 2001, the last time it changed hands.

Clarifying the purchase price, Abdul Aziz said SEDC bid A$18mil (RM52.3mil) for Carmor Plains but another bidder offered A$21.5mil (RM62.4) for it.

"However, the other bidder was not able to transact the property and the agent came back to us asking us to pay A$21.5mil for the property.

"But I told them we had to bargain and in the end we came to a price of A$20mil. It was a willing-buyer-willing-seller basis and all the records are there," he said.

He added that the acquisition of Carmor Plains had fulfilled procurement procedures and due diligence in compliance with good corporate governance practices.

"The decision to acquire Carmor Plains was duly approved in the SEDC board meeting on March 5 and also in Rosewood Station Property Limited's board of directors meeting on Feb 28," he said.