PLANTER scheme operator East West One Group (EWOG) will re-commence critical rehabilitation works across its oil palm estates in Sabah, thus marking a long-awaited operational breakthrough following prolonged delays in the release of approved trust funds.
The group’s restructuring and rehabilitation (R&R) programme is implemented pursuant to a Kuala Lumpur High Court-sanctioned consent judgement that governs the administration and disbursement of funds held in trust by Pacific Trustees Bhd (PTB).
Despite a clear and overwhelming mandate from planters at its Aug 12, 2024’s extraordinary general meeting (EGM), operational funding was not meaningfully disbursed for approximately eight months, hence resulting in severe disruption to estate operations and recovery timelines.
“Plantation recovery operates within a narrow biological window. While the R&R framework was duly approved by stakeholders and endorsed by the High Court, the absence of timely fund disbursement placed the estates under significant stress,” remarked an EWOG spokesman on the critical nature of the current operations.
“The commencement of on-ground rehabilitation is, therefore, a critical step forward. However, continued progress is contingent upon the timely and uninterrupted release of operational funds in accordance with the Court-sanctioned framework.”
The delay in initial funding deployment significantly constrained estate operations.
Employees, contractors and service providers were required to continue supporting the estates under challenging conditions despite the existence of a trust structure established specifically to facilitate timely payments.
As a result, the estates experienced prolonged lapses in essential upkeep, including fertilisation and maintenance, thus leading to:
- Accelerated deterioration of plantation assets;
- Increased rehabilitation costs; and
- Heightened operational and recovery risks.
To stabilise conditions and prevent further degradation, EWOG has appointed Cekal Gelora Sdn Bhd to undertake the initial phase of rehabilitation works. Immediate priorities include:
- Clearing overgrown plantation areas;
- Restoring estate accessibility;
- Conducting field and yield assessments; and
- Initiating early-stage agronomic recovery.
In addition, an independent consultant has been engaged to establish baseline estate conditions and provide oversight to ensure transparency and accountability throughout the recovery process.
The funding delays have also had a direct impact on local landowners and surrounding communities, many of whom depend on the estates for their livelihoods.
“Following the (Aug 12, 2024) EGM, there was a strong expectation that rehabilitation would begin without delay,” lamented a representative of the landowners.
“The prolonged inaction caused serious concern at the ground level. While we welcome the commencement of works, it is crucial that progress is not disrupted again.”
EWOG reiterates that all rehabilitation activities are being carried out strictly in compliance with the High Court Consent Judgment and the mandate provided by planters.
The group calls on the trustee to comply with the Court-approved consent judgment framework, thus ensuring that the funds are disbursed efficiently and without further delay in order to safeguard asset value and protect the interests of all stakeholders. – March 24, 2026
