Friday, October 24, 2008

New Concept of NCR Land Development

Land is always stirred emotions in people. In Sarawak, the native population espacially Dayak communities are rich in ancestral land, which is passed from generation to generation.To the Ibans of Sarawak or to the Dayak groups or natives , land is inherent property, cultural heritage and wealth.

Sarawak government policy is to raise the standard of living of the Sarawak native or indigenous population by placing their Native Customary Right (NCR) land within the corporate structure that would facilitate large-scale land development in rural areas.

Sarawak government has introduced a NCR land development scheme called "KONSEP BARU PEMBANGUNAN TANAH HAK ADAT" OR New Concept of Development on Native Customary Rights Land. The concept is formulated on the premise that the vast tract of NCR land can be turned into "LAND BANK", with new form of land ownership to facilitate joint venture operations with private sector for the purpose of large-scale development. NCR Land owners surrender their land.Under the New Concept, all NCR lands in an area would be delineated into one large block deleting boundaries of Native Customary Land territories. A body corporate,usually Land Consolidation and Development Authority (LCDA) would act as the Tustee Agent (with Power of Attorney) with a private plantation companies, selected by an agency itself,to be partners in implementation of plantation project of Native Customary Land.The desired documentation frameworks to implement the new concept of NCR Development are:-

1) a Deed-between State Government of Sarawak, Native NCR landowners and Managing Agent;
2) a Trust-NCR landowners appoint a Government Agency as their Trustee;
3)a Joint Venture Agreement-between Trustee and Developer(private company).

In the joint-venture company, the private company will have 60% equity while the government agency will hold 10%, and NCR landowners will get 30% equity share for investing their land for a renewable term of 60 years.

NCR landowners are rid of power and rights. They do not have the say nor the right to sit in the Joint Venture Company Board. By signing the Power of Attorney, they leave all rights over their lands to LCDA before the project begins. As the NCR landowners are rid of power and rights to check the Joint Venture's management, accounts, and all related matters, they are in great uncertainties of ensuring themselves that Joint Venture is making profit and that they would be receiving appropriate dividend.

Boustead Pelita Kanowit Plantation project in Kanowit District, Kanowit,Sarawak shows a very bad example. The project started in 1995.After NCR landowners put up protest in May,2008, only then the joint venture company,Kanowit Oil Palm Plantation Sdn. Bhd. distributed interim divident to 2133 participants in a total sum of RM1.39 million. Average amount each participant received RM890.76. Average dividend for each participant per year is RM68.50

When the native communities are not being put in the management and Board of Directors, they have no control over what is proposed. The intention of the Sarawak State Government to lift the standard of living of the rural native communities is doubtful. The Aspirations, needs and other general interest of the native communities have not been taken care of the "Konsep Baru" proposal. It is seen as merely a gentle way of grabbing lands from the native communities.

Ta Ann deployed its men to Naman and Durin areas to persuade Iban NCR landowners to become participants and surrender their NCR land.Because of the bad examples shown in Kanowit, Iban communities of Durin and Naman are reluctant to partcipate in the proposed joint venture projectTa Ann Pelita Durin Plantation between LCDA and Ta Ann to develop about 5141 ha. of NCR Land.

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