Sabah govt terminates SFI logging contract

KOTA KINABALU: The Sabah government has ordered the termination of the logging contract with Sabah Forest Industries Sdn Bhd (SFI), which is under receivership.

Sabah Forestry Department chief conservator Frederick Kugan said the state cabinet made the decision on May 5 to overturn the logging contract with a view to terminating it.

SFI had continued minimal logging operations while under receivership to cover certain costs and fulfil obligations under its timber licence agreement as well as the Companies Act 2016.

In line with the state cabinet decision, Kugan said his department issued a directive on May 7 to cease logging operations immediately.

He said on Wednesday (May 12) the department has been directed to conduct a full assessment and recommend further action to the state government.

Villagers of Kg Molotob in the concession area had urged the state government to stop the logging activity, saying it had been part of their native village for generations.

They hoped the land would be removed from the SFI concession and returned to them.

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