Nation

A-G's Report: RM42.8mln revenue shortfall due to lack of supervision of Johor forest project

KUALA LUMPUR: Johor state government has suffered revenue shortfall amounting to RM42.80 million from an unsatisfactory monitoring and supervision of projects by the Forest Plantation Project (PLH) (Penubuhan Projek Ladang Hutan).

The audit found several matter contradicted to the terms of the agreement.

Among them were; “After a measurement, only 58,030.54 hectares or 78.5 per cent that could be utilised and there are still 11,262.71 hectares or 19.4 per cent of the 58,030.54 hectares have yet to be managed even though the agreement has been signed,” the report said.

The report also added, six forest entrepreneurs have yet to pay a total usage permit RM3.35 million.

“Two entrepreneurs did not pay for “tapping right” amounting to RM37.82 million for palm oil and latex and two foresters underpaid or failed to pay their usage rights amounted to RM1.92 million.

“The establishment of the Forest Plantation Project (PLH) aimed at restoring deforested areas without involving state government’s expenditures and accommodating timber supply so it will not rely entirely on timber sources from native forests,” the report added.

The Johor State Forestry Department (JPNJ) and the Johor State Economic Affairs Planning Unit (UPENJ) were given the responsibility and had appointed 10 forest entrepreneurs to implement the PLH covering an area of 73,888.80 hectares with the cultivation of Timber Latex Clone or TLC, Acacia tree and other forest trees.

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