A few people have asked me if it is true that the government gave a RM16.2 million soft loan to YB Nga and YB Ngeh's Upayapadu Plantation Bhd.
The RM16.2million soft loan was initially given to Upayapadu's previous owner by the Forest Plantation Development Sdn Bhd.
A Special Purpose Vehicle (SPV), Forest Plantation Development Sdn. Bhd. has been established by the Malaysian Timber Industry Board (MTIB) to manage the disbursement of soft loans, carry out auditing process of the plantation as well as to provide technical support and training for the programme. Local and foreign companies are eligible to participate in the Forest Plantation programme. There are financial facilities extended by the government for eligible companies :
The Malaysian Timber Industry Board (MTIB) is a statutory body accredited to the Ministry of Plantation Industries and Commodities and hence it is a govt body.
Hence the soft loan by Forest Plantation Development Sbd Bhd is classified as a govt soft loan.
See here for proof that DAP YB Ngeh is officially the majority shareholder for Upayapadu Plantations: https://www.facebook.com/lim.siansee/posts/1611429859075802
When Ngeh Koo Ham, Nga Kor Ming and the other shareholder's bought 100% of Upayapadu, on 4th June 2012, YB Ngeh wrote in to the Forest Plantation Development Sbd Bhd for them to approve and consider extending the RM16.2million soft oan (of which RM2million was spent then and remaining RM14.2 million yet to be drawn down).
From the SSM records dated today (7th Jan 2015), the RM16.2million soft loan is listed as an "unsatisfied" charg - which suggests that the soft loan was indeed extended to Upayapadu by the govt body and possibly allowing Upayapadu to draw down the RM14.2million available balance.
Therefore, we can conclude that our govt is very fair and nice. Even if you scold and slander govt every day for years, our govt will still lend you RM16.2 million soft loan to do your timber business.