In answer to Seliong Ak Wau's article--"Some Facts and Fallacies-the Salcra episode"

This writing is to put matters right following an article written by one Seliong Ak Wau (hereinafter shall be referred to as "the author") appearing in Dayak Baru weblog on 16 December 2008.

The author has commented on my writing in my/this blog that I captioned "Income of a participant of SALCRA land development programme"

The author's remarks were as follows:

"4. Oil Palm Tree is Money Tree

The writer has not studied IRR and HPR. He thinks RM2,397.37 for a 5.6 acres for 5 years is a crappy return. If you agree with him, the Oil Palm tree “Elaeis guineensis” is therefore not the money tree. It is a fallacy we have believed, like the old tales that gold is buried by leprechauns at the end of the rainbow. This article has no conclusion. You make your own."

Dear readers,

I never at any moment made any reference that oil palm tree is money tree. I am only of the view that dividend received by participants was relatively almost next to nothing taking into account the size of individual participant's of land. If that is not crappy what is crappy in the circumstance? On the average one acre of fully grown oil palm can produce around 1.8 to 3.0 metric tons per month of FFB (Fresh Fruit Bunches). At its highest, per metric ton of FFB was RM500++. The current price of FFB per metric ton is between RM150-RM200. Setting aside the operation of IRR and HPR, I still think the returns from the venture was almost next to nothing.Putting the worst scenario and at the worst price, i.e., 1.8 ton x 5.6 acres x RM200 = RM1512 per month. Assuming 50% goes into the costs of production, the left over is RM706 per month. Per year would be RM8,472. For 5 years would be RM42,260. Let say 50% goest to management cost, etc and 50% would be issued as dividend. That would be RM21,130 per five years. Per year is about RM4,266, which is RM355 per month. But the reality is, it was about RM33.00 per month.

The author said my article has no conclusion. I have clearly stated the conclusion in the following words:

"From the above case study, can any of us tell whether the participant herein below would ever be rich solely relying on that income? The answer is obviously in the negative. This is just one example, which is the reflection of many more participants."

I really need to correct the mistake that the author made as to the status of Salcra and FELDA. Both organisations are similar in all things except land ownership and amount of dividend distributed.

The author was right that in FELDA the land is that of the state but in SALCRA, the land belonged to the participants. But the author was wrong in saying only NCR were involved. Both NCR and titled native land were involved. In FELDA after some years the land were given to the settlers. In SALCRA when participants no longer participate the land are returned to the owners.

The author was rather confused in mixing the role play by JVC (joint venture companies under "the New Concept of Development on NCR land". The modus operandi in SALCRA is totally different from the JV under the New Concept of Development on NCR land. In SALCRA, the land is demised for 15 or more years. The paticipant provide land and SACRA provides financial and technical resources. Although SALCRA comes under the purview of the Ministry of Land Development, there is no JVC involved as in the New Concept of Development on NCR land. SALCRA was established 32 years ago under a specific Ordinance with specific objectives. The venture is strictly between land owners participants and SALCRA. No JVC is involved. In the New Concept of Development on NCR land, the land is demised for 60 years with equity ratio of 60:30:10. JVC hold 60%; land owners hold 30% and Management Agency (usually LCDA) holds 10%. This venture purely involved NCR. In this concept the land may revert back to land owner after the expiry of 60 years upon payment of premium. The obscurity of land owners right (as 30% share holders) in the the New Concept of Development on NCR land and the participants in SALCRA's land programme is similar. Both land owners in the two ventures are obscure. And also of similarity is the "waiting for dividend syndrome".

The Ministry of Land Development Sarawak was established on 12 July 1985 under Article 9(1) of the Constitution of the State of Sarawak, is the approving authority of the JV in the New Concept of Development on NCR land. This is where IOI, Boustead, Rimbunan Hijau, etc come into the picture as JV partners.

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One Dr. Manang in his reply to Seliong Anak Wau's comment on 16th December 2008, said, which I qoute in one paragraph in verbatim herein below as follows:

"Kasih amat meh sidak ex-staff and current staf SALCRA di anuk kita wai. I was informed that most of the staff are the participants themselve or son/daughter of the participant and they know we are talking rubbish about SALCRA".
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I think Dr Manang had missed our points altogether. None of us had ever passed any adverse remarks on former or current staff members of SALCRA.We are only concern with how Tan Sri Alfred Jabu has been taking the participants for a ride. Hence depriving them of what they truly deserved in the circumstance. If indeed many of SALCRA staff members were/are children of participants we are truly happy for that. Thus there is more reason for Dr Manang to join hand with us to reject injustices done to their parents.

We are not playing a hero game here. Injustice any where is injustice every where. We do not maliciously single out Tan Sri Jabu but for reason already discussed and argued on for the past weeks. It is pitiful that some people do not notice or ignorant of injustices done to the meek and naive. For that reason I like to quote one line from a Renaissance writer, Dante.

He said, "The hottest place in hell is reserved for those who in time great moral crisis chose to remain silent".

I hope this will explain why we passionately get ourselves involved in the controversy.