SABAH will be reviewing all deals given to timber concessionaires operating within the Forest Management Units (FMU) as part of the government’s overhaul into the state’s timber industry, a week after an interim export ban was imposed on the commodity last week.

Chief Minister Shafie Apdal said he had received reports that the logging activities had been linked to the death of wildlife, the destruction of the natural watersheds, illegal logging and tax evasion.

“There is no point if the government can earn a massive income from royalty, but along the way there had been undeclared taxes, as well as illegal logging activities.

“There is nothing to worry for the concessionaires. They will not suffer losses. Just that selling their timber to the local market will no longer be as profitable as when the logs are exported,” he told reporters after a Sabah cabinet meeting in Kota Kinabalu today.

It was unclear why Shafie begun his revamp of the state with the timber industry, but the issue was brought up during his election campaigns.

He had planned to launch an inquiry into the timber dealings of Yayasan Sabah and allegations of money laundering against former Sabah chief minister Musa Aman.

Former timber tycoon Michael Chia, an associate of Musa, was allegedly arrested with RM40 million in cash when he was on his way back from Hong Kong to Malaysia in 2008.

Whistleblower website Sarawak Report had also highlighted alleged corruption in the timber industry, detailing how millions of ringgit in timber proceeds were siphoned out of Sabah by Musa through offshore accounts.

However, Musa was cleared of corruption charges in 2012 as the money was said to be a “political donation” for Sabah Umno.

Shafie, who announced the ban on timber exports on May 23 also vowed to get to the bottom of things as the new state government looks for more ways to put an end into the illicit timber trade and illegal logging in Sabah.

“For now, I can’t pin down who are doing all the illegal logging activities. But from what I was briefed previously, some companies that were given replanting concessions were felling logs instead, or planting oil palm.

“We no longer want any quarters to exploit the state’s resources and this is why we want to get to the bottom of things,” said Shafie, adding that he will have a formal briefing from State Forestry director Sam Mannan soon. – May 28, 2018.