Felda settlers claim minister threatened them

The Court of Appeal today heard that Agriculture and Agro Based Industries Minister Mustapa Mohamed had threatened settlers in Felda Kemahang 3 in Tanah Merah, Kelantan in 2002, to withdraw a lawsuit against Felda, its area manager and its refinery or risk being removed from the settlement.

Counsel Yusfarizal Yusoff highlighted the matter in court when judges James Foong and Abdull Hamid Embong asked him why the settlers were applying for exemplary and aggravated damages from Felda and two others. The other judge in the three member panel was Abdul Malik Ishak.

Yusfarizal submitted before a court room packed with affected settlers that Mustapa's threats were mentioned by settler Othman Hamad in his testimony at the Kota Bharu High Court where he had highlighted the fraud committed by the area manager and Felda's palm oil refinery to the authorities

He said as there was no action after highlighting the matter to Felda, a police report was lodged to allege the cheating, but no action was taken by the police or Felda.

The counsel said Othman even submitted a memorandum to the Felda chairman in 2002 but to no avail. Sometime in September, the settlers filed the lawsuit.

The settlers named Felda, its area manager Ibrahim Ismail and Felda Palm Industries Sdn Bhd, as defendants, alleging the agency had cheated them in the payment of palm fruit. Ibrahim has since passed away.

The Kemahang 3 settlers in Tanah Merah filed the suit on Sept 22, 2002, saying the cheating took place from 1996 to 2002. They are each seeking between RM20,000 and RM30,000 in general damages.

High Court judge Mohd Azman Husin had on Jan 13, last year ordered Felda to pay RM7.8 million plus interest after the counsel representing Felda and Felda Palm Industries Sdn Bhd failed to turn up for the hearing of the suit.

The counsel had applied for a stay of execution in March last year but this was rejected by Mohd Azman.

Mohd Azman also ordered Felda solicitors to deposit the amount with accumulated interest, now totalling more than RM11 million, in the accounts of the plaintiff's solicitors.

Disciplinary action threatened

"Following the news being highlighted, Felda and the other defendants did not want to discuss to resolve the case. They even threatened disciplinary action on the settlers. On Nov 1, 2002, a meeting was held by Felda along with Umno Kemahang 3," Yusfarizal submitted today.

"All settlers were required to attend the meeting, which was also attended by Mustapa. There, the settlers were threatened to withdraw the legal action or face being expelled from the Felda programme. Othman lodged a police report against Mustapa on Nov 3."

Many of the affected parties had travelled from Tanah Merah in Kelantan to hear the case in Putrajaya. The trial which was initially slated to start on Monday began today

The counsel was submitting in a leave application by Felda and two others after they were ordered by the Kota Bharu High Court to pay more than RM11 million to the affected settlers.

Yusfarizal also submitted that the Court of Appeal should reject the leave application as the suit had taken too long.

"It took six years since the filing of the action and already 53 of the original settlers have passed away. Another one passed away three days ago.

"Withholding the action and ordering a retrial of the case would amount to more waiting for the settlers. This is against the principal of justice," said the counsel.

Felda's counsel Cecil Abraham submitted that a clear injustice would be done if the Court of Appeal did not allow for a retrial of the case.

"The court should allow Felda to continue on with the case," he said.

Foong on hearing all the submissions said the court had to reserve judgement as there were many things that the judges had to consider.

"This is an important case and we cannot rush in making a judgment," he said.