FGV Annual Report 2012

113 F i n a n c i a l S t a t e m e n t s 2 0 1 2 P e n y a t a K e w a n g a n 50 COMMITMENTS (CONTINUED) Group (continued) (b) Capital commitments Group 2012 2011 RM’000 RM’000 Capital expenditure approved and contracted for: – Property, plant and equipment 92,507 20,105 Capital expenditure approved but not contracted for: – Property, plant and equipment 296,724 85,161 – Biological assets 31,963 – 421,194 105,266 51 CONTINGENT LIABILITIES (a) An associate of the Group, Felda Holdings Bhd, has the following contingent liabilities, of which the Group is not jointly or severally liable: (i) On 12 June 2009, Felda Palm Industries Sdn Bhd (‘FPISB’) and FELDA were sued by 645 settlers of Felda Maokil Scheme in Johor for alleged fraud and manipulation of the extraction rate of palm oil. The claim amounted to RM71.8 million. On 30 November 2011, The Putrajaya Court of Appeal decided that the case shall be heard before an arbitration proceeding based on section 10 of the Arbitration Act 2005 and original agreement between the settlers and FELDA which mentioned that if any dispute arises, the dispute shall be heard before an arbitration proceeding. On 29 August 2012, Johor Bahru High Court ordered the case to be closed pending the outcome of the Plaintiff’s Motion and Appeal to the Federal Court against the Court of Appeal’s Decision. The Federal Court has fixed 16 July 2013 for final case management of the Applicants’Originating Motion to the Federal Court for Leave to Appeal. (ii) On 3 September 2010, FPISB and FELDA were sued by 514 settlers of Felda Serting Scheme and 252 settlers of Felda Gugusan Raja Alias Scheme in Jempol, Negeri Sembilan for alleged fraud and manipulation of the extraction rate for palm oil. The claim amounted to RM15.4 million for year 2008 only. FPISB filed Pleading and Statement of Defence (“SOD”) in the Seremban High Court on 22 December 2011. The Seremban High Court fixed 14 September 2012 for the hearing of the Plaintiffs’ application to withdraw 82 Plaintiffs from the suit. The Court allowed the application accordingly but it highlighted that the application had omitted another 14 Plaintiffs. Therefore Court instructed the Plaintiff’s Solicitors to file 2nd application to withdraw the suit for those Plaintiffs who were omitted earlier as well as to file afresh Issues to be Tried and Agreed facts. The Court now has adjourned the matter, pending for next hearing dates on 12, 15 and 16 July 2013 for Defendants to cross examine the Plaintiffs’second witness. (iii) On 12 July 2011, FPISB and FELDA were sued by 711 settlers of Felda Jengka 1 to 25 and Felda Sg. Tekam in Temerloh, Pahang (Jengka A) for alleged fraud and manipulation of the extraction rate of palm oil. The claim amounted to RM22.9 million for year 2008 alone. FPISB has filed SOD in the Temerloh High Court on 9 September 2011 and the plaintiffs had filed their reply on 9 November 2011. The Court has on 24 April 2012 allowed order in terms for application by FELDA and FPISB to strike out 42 Plaintiffs with cost on the cause.The Court now fixed the matter for case management on 29 April 2013 for fixing the trial dates and marking of documents. The trial dates will be fixed on the said coming case management. (iv) On 10 November 2011, FPISB and FELDA were sued by 365 settlers of Felda Jengka 1 to 7, 10, 13 to 19, 23 to 24, Felda Ulu Jempol and Felda Sg. Tekam Utara (Jengka B) for alleged fraud and manipulation of the extraction rate of palm oil. The claim amounted to RM11.7 million for year 2008 only. FPISB has filed Memorandum of Appearance in Temerloh High Court on 15 November 2011, Statement of Defense on 27 December 2011 and an application to Strike-Out Ground on Plaintiffs’claims on 9 February 2012. Further, both Defendants and Plaintiffs have filed written submissions on the Strike-Out Ground issue. The Court had on 19 April 2012 allowed order in terms for application by FELDA and FPISB to strike out 20 Plaintiffs with cost on the cause. The Court now fixed the matter for case management on 29 April 2013 for fixing on the said coming case management.