Hornbill Unleashed

October 9, 2013

Sarawak timber well managed, says AG Report

Filed under: Logging,Politics — Hornbill Unleashed @ 6:36 AM
Tags: , , ,

Alyaa Azhar

According to the Auditor-General report, Sarawak timber industry development corporation Harwood has been consistently registering a post-tax profit until 2012.

Sarawak timber has been well managed and proved to be lucrative with the Sarawak timber industry development corporation Harwood Timber Sdn Bhd (Harwood) reporting a profit after tax of RM3.94 million in 2009, RM4.27 million in 2010 and RM4.60 million in 2011.

The recently released Auditor-General (AG) report had announced that an audit conducted from October 2012 to February 2013 revealed that Harwood’s overall financial performance was good.

Despite that, the timber industry had always been under fire not only here but also in other parts of the globe with illegal logging continuously making headlines here and abroad.

An instance was Sarawak timber company Ta Ann linked to Chief Minister Taib Mahmud, which had been embroiled in controversy in its involvement with the Tasmanian timber industry.

Australia’s Green Party had issued a notice to Ta Ann Tasmania over its environment-compromising logging activities and six years of losses despite being awarded numerous subsidies by the state.

Meanwhile in Sarawak, the state government had given Harwood the mandate to monitor the distribution of logs in Sarawak and also those for export to ensure that the logs were from legally felled trees.

Harwood inspects and verifies logs that had been imposed royalties by the Sarawak Forestry Corporation as well as issuing transportation passes to the licensee.

Harwood, a wholly-owned subsidiary of the Sarawak Timber Industry Development Corporation (STIDC) was incorporated on Jan 3, 1985 with an authorised capital of RM20 million and paid-up capital of RM12 mil.

For the financial year 2011, Harwood recorded a profit after tax of RM4.60 million and an accumulated profit of RM100.49 million.

Despite the glowing report on its activity management and corporate governance from the AG, the entity was found to be without a corporate plan, which the AG deemed crucial to keep the entity firmly planted on track.

“Harwood is recommended to prepare a corporate plan that comprises long- and short-term strategic moves including coming up with a set the key performance indicators to guide the entity towards achieving its objectives and providing a clear corporate direction for its new ventures,” the report recommended.

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3 Comments »

  1. Only rm4 million in profit and they say it is well managed? Wonder how much the gangsters made from their illegal logging activities, how much shin yang, samling and the rest of them made?

    And most importantly how much did the natives who looked after the forest all their lives for generations get? What is certain and true is the natives lost their communal reserve lands, their communal reserve forest, their unpolluted rivers, their wild games and fruits trees forever.

    Comment by brian — October 10, 2013 @ 3:15 PM | Reply

  2. Did the Government Auditor or the Gomen Editor say that? What idiocy !!! 🙄

    Dua kali Lima semua!

    Comment by dungu — October 9, 2013 @ 3:07 PM | Reply

  3. Of course timber business is good, you chop a piece of wood and sell it at a profit. Before this the state has intimidated the Auditor General for reporting the trurh (i.e. mismanagement). The Auditor General will not want to be intimidated again.

    Comment by i knowit all — October 9, 2013 @ 1:31 PM | Reply


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