A Malaysiakini report has revealed a recent scandal in which RM52 million in Bank Islam loans were used to finance a poorly managed oil palm plantation near the Pahang National Park, attracting more attention from elephants than humans!
The project, run by PKNP Agro Tech Sdn Bhd (PASB), saw nothing but barren land, saplings trampled by elephants, and a harvest of as little as 7kg per hectare, far below the Malaysian average of 16.41 tonnes.
A visit to the site by Malaysiakini found that the plantation was not developed in accordance with the recommendations of the Environmental Impact Assessment (EIA) report, which included measures to protect the area from disturbance by animals such as elephants.
Ironically, even though the project proved to be a financial failure and did not comply with the EIA report, Bank Islam still approved six additional loans to PASB in nine years!
This raises the big question of how local banks can be involved in illegal logging that is clearly damaging the environment?
Environmental watchdogs and anti-corruption activists have urged BNM to tighten its oversight and investigate the case, warning that it is not just a credit risk issue, but also a recipe for ecological and financial disaster.
Meanwhile, Bank Islam may seize 5,976 hectares of collateral land if PASB defaults on its debt.
PASB has not yet issued a statement on the matter, but Bank Islam declined to comment, stressing its commitment to maintaining confidentiality and legal obligations.
