FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 333 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 57 CONTINGENT LIABILITIES (CONTINUED) (iii) 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 the year 2008 only. The Court had on 19 April 2012 allowed an order in terms for application by FELDA and FPISB to strike out 20 Plaintiffs with costs. The Temerloh High Court has vacated all the dates fixed previously for trial. The matter is now has yet to be fixed with new trial dates. On 28 September 2016, Plaintiffs filed application to amend statement of defence and was allowed by the Court. Defendants appealed on the high court's decision allowing the amendment of statement of claim ("SOC"). On 17 February 2017, Plaintiffs' application to amend SOC was allowed. Defendants, on 2 March 2017 filed an appeal on the objection of the amendment of SOC. Dismissed. This case will be heard with the amended SOC. Court has yet to fixed dates for trial. This case will be heard together with case Mempaga. (iv) On 20 September 2011, FPISB and FELDA were sued by 550 settlers of Gugusan Bera for alleged fraud and manipulation of the extraction rate of palm oil. The plaintiffs are claiming for a share from the sale of kernel, burn ash and sludge oil which was derived from their FFB consignments sold to FPISB's mills. The claim amounted to RM19.2 million for the year 2008 only. FPISB has filed Memorandum of Appearance in High Court on 15 November, a Statement of Defence on 3 January 2012 and have also filed an application to Strike-Out Ground on Plaintiffs' claims on 25 January 2012. The matter fixed for further clarification on 19 October 2016 has been vacated. Temerloh High Court has yet to fix dates for further clarification. (v) On 10 May 2012, FPISB and FELDA were sued by 770 settlers of Rancangan Felda Chini 1 to 5 and Rancangan Felda Chini Timur 1 to 3 in Pahang for alleged fraud and manipulation of the extraction rate of palm oil. The claim amounted to RM24.8 million for the year 2008 only. FPISB has to file a Memorandum of Appearance in High Court on 16 May 2012. On 16 November 2016, Kuantan High Court delivered its decision dismissed the entire Plaintiffs' claim with cost RM300,000 to be paid to the Defendants. The Court found out that Plaintiffs have failed to prove their claim for fraud, conspiracy to defraud and breach of trust. On 14 December 2016, Plaintiffs have filed appeal being not satisfied with the high court's decision. Court of appeal has yet to fix dates to hear the appeal. (vi) On 5 June 2012, FPISB and FELDA were sued by 956 settlers of Rancangan Felda Keratong 1 to 10 for alleged fraud and manipulation of the extraction rate of palm oil. The claim amounted to RM30.9 million for the year 2008 only. FPISB has filed a Memorandum of Appearance in High Court on 26 June 2012. The matter was heard on 22 to 26 June 2015 and continued on 29 to 30 June 2015 and 1 to 3 July 2015. The Court has heard the case and completed. On 27 to 29 July 2016, Plaintiffs filed application to amend statement of claim and was allowed by the Court. Defendants appealed on the high court's decision allowing the amendment of statement of claim. This matter was heard on the Plaintiffs' application for Recusal Application on 3 March 2017. Court allowed Plaintiffs' application. Now awaiting for the dates of trial fixed by the Court. (vii) On 25 January 2013, FPISB and FELDA were sued by 351 settlers of Rancangan Felda Mempaga for alleged fraud and manipulation of the extraction of palm oil. The claim amounted to RM11.3 million for the year 2008 only. The matter which was fixed for trial on 22 to 26 September 2014 have been vacated to give priority to hear Jengka A case. The Temerloh High Court has vacated all the dates fixed previously for trial. On 28 September 2016, Plaintiffs filed application to amend statement of defence and was allowed by the Court. Defendants appealed on the high court's decision allowing the amendment of statement of claim. On 17 February 2017, Plaintiffs' application to amend the statement of claim was allowed. Defendants, on 2 March 2017, filed an appeal on the objection of the amendment of SOC. Dismissed. This case will be heard with the amended SOC. Court has yet to fixed dates for trial. This case will be heard together with case Jengka B. The above amounts are shown at gross before accounting for non-controlling interests and effects of the five years indemnity provided by Koperasi Permodalan Felda Berhad ("KPF") in December 2013 as part of the acquisition of KPF's interest in FHB. Based on available information and on legal advices received, the Directors are of the view that there is a reasonable chance of defending all the above claims and therefore, no provision has been made in the financial statements.