KUALA LUMPUR: East West One Group (EWOG) has confirmed that the implementation of the rehabilitation and restructuring (R&R) exercise of its Sabah oil palm estates has commenced following approval by planters on August 12, 2024.
The R&R exercise was overwhelmingly supported by planters as the most practical pathway to restoring plantation productivity, safeguarding estate values, and maximising long-term recovery prospects.
This is after EWOG obtained relief from the High Court, allowing the group’s application compelling Pacific Trustees Bhd (PTB) to release RM6.770 million for approved R&R-related claims.
A spokesperson for EWOG said the R&R programme has commenced pursuant to the mandate given by planters.
However, the pace of implementation ultimately depends on timely access to funds allocated for this purpose.
“These are not discretionary funds. They are monies intended to facilitate the recovery of the plantations for the benefit of planters and stakeholders.
“Every delay in releasing approved funds directly affects field operations, increases rehabilitation costs and prolongs the recovery period.
“The High Court’s decision reinforces what EWOG has consistently maintained: that unnecessary delays in fund disbursement jeopardise the rehabilitation exercise and place the plantations at risk of further deterioration,” the spokesperson said.
The R&R exercise has been significantly hampered by delays in the release of funds intended for rehabilitation purposes, which are currently held under PTB trusteeship, and the required funds have not been forthcoming despite a court judgment.
EWOG noted that plantation rehabilitation is inherently time-sensitive and that oil palms require continuous maintenance, fertilisation, harvesting support, drainage management, infrastructure repairs, and labour deployment.
“Any delay in the required funding deployment directly affects operational recovery and increases the eventual cost of rehabilitation, and contributes to possible failure,” the spokesperson said.
To address the ongoing funding impasse, EWOG sought relief from the High Court.
The court subsequently allowed EWOG’s application compelling PTB to release RM6.770 million for approved R&R-related claims.
In delivering its decision, the Court found that PTB had failed to comply with the terms of a Consent Judgment previously recorded before the High Court, despite EWOG having submitted the claims and provided the required supporting documentation and explanations.
The Court further recognised that oil palm estates constitute living biological assets requiring continuous upkeep.
Any prolonged interruption in maintenance funding may result in irreversible operational damage, reduced yields and diminished estate value.
EWOG emphasised that it continues to face scrutiny over the pace of rehabilitation, despite the primary obstacle being delays in accessing funds approved under the R&R framework.
The group is currently managing the expectations of planters, landowners, contractors and estate workers while awaiting the release of funds necessary to carry out critical rehabilitation works.
The group maintains that all stakeholders share a common objective: ensuring that rehabilitation funds reach the ground promptly so that plantation recovery can proceed efficiently and planters’ interests can be protected.
The group remains fully committed to executing the R&R exercise, restoring plantation productivity, preserving underlying asset values, and achieving the best possible recovery outcome for all stakeholders.
The group will continue to pursue all available legal and operational avenues to ensure that all approved rehabilitation funds are released without further delay and that implementation of the rehabilitation exercise proceeds as intended.
