Sabah Forestry Development Authority Enactment 1981

This Enactment may be cited as the Sabah Forestry Development Authority

Enactment 1981 and shall come into operation on such date as the Minister may, by notice in the Gazette, appoint.

The Minister may appoint different dates for the coming into operation of different parts or provisions of the Enactment.

Interpretation.

As from the commencement of this Enactment there shall be constituted the

―Sabah Forestry Development Authority‖ which shall be a body corporate with perpetual succession, capable of suing and being sued in its corporate name and with power to purchase or otherwise acquire, hold, and exchange or alienate or otherwise deal with in any lawful manner whatsoever, any property movable and immovable, and to enter into contracts and generally to do such acts and things as a body corporate may do by law and as are necessary for, or incidental to, the carrying out of its objects and the exercise of its powers as set out in this Enactment.

The Authority shall have a common seal which shall bear such device as the

Authority may approve and such seal may from time to time be broken, changed, altered and made anew by the Authority, as the Authority may think fit.

Until a common seal is provided under subsection (2), a stamp bearing the inscription ―The Sabah Forestry Development Authority" may be used as the common seal of the Authority.

Composition of Authority.

The Authority shall consist of the following members –

The members as specified in paragraphs (a), (b) and (d) of subsection (1) shall be appointed by the Yang di-Pertua Negeri.

An ex-officio member may by instrument in writing addressed to the Chairman appoint another officer in the public service of the State as an alternate member who may attend on his behalf any meeting of the Authority which such member is for any reason unable to attend and such alternate member when attending such meeting shall for all purposes be deemed to be a member of the Authority.

Subject to the provisions of section 7 of this Enactment, a member other than an ex-officio member and the General Manager, shall hold office for a period of three years from the date of his appointment, and shall be eligible for re-appointment.

Resignation and revocation.

A member, other than an ex-officio member and the General Manager, may at any time resign his office by giving notice in writing to the Chairman.

The appointment of a member may at any time be revoked by the Yang di-Pertua Negeri if he thinks it expedient to do so.

Disqualification from membership.

a person who is of unsound mind or otherwise incapable of performing his duties or managing his affairs;

a person who is prohibited from being a director of a company under the provisions of any written law relating to companies;

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a person who has been convicted of any offence involving fraud, dishonesty or moral turpitude; and

a bankrupt.

Vacation of office.

on his death;

if he is absent from three consecutive meetings of the Authority without the special leave of the Chairman or leave of absence granted under this Enactment and the Authority passes a resolution declaring his office vacant;

if he resigns his office;

if he becomes disqualified for membership under section 6 of this Enactment;

if his appointment is revoked by the Yang di-Pertua Negeri.

Leave of absence.

If the office of a member, other than an ex-officio member and the General

Manager, becomes vacant, the Yang di-Pertua Negeri may appoint another suitably qualified person to fill such vacancy for so long only as the member in whose place he is appointed would have held office.

Where any member, other than an ex-officio member and the General Manager, is prevented by illness, absence from the State or other like cause from performing his duties as a member the Yang di-Pertua Negeri may appoint any suitably qualified person to act as

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deputy for such member during such period as he is so prevented from performing his duties.

Remuneration of members of Authority.

The Authority shall meet as often as may be necessary or expedient for the transaction of its business and such meetings shall be held at such places and times as the

Chairman may determine:

Provided that the Chairman shall not allow more than three months to elapse between such meetings.

Where not less than three members, by notice in writing signed by them and addressed to the Chairman, request that a meeting of the Authority be held for any purpose specified in such notice the Chairman shall, within seven days of the receipt by him of such notice, convene a meeting accordingly.

Procedure of meetings.

The quorum necessary for the transaction of the business of the Authority shall be five.

In the absence of the Chairman from any meeting of the Authority, the Deputy

Chairman shall preside thereat and, in the absence of both the Chairman and the Deputy

Chairman, the members present shall elect one of their number to preside thereat.

Questions arising at any meeting of the Authority shall be decided by the votes of the majority of those present and voting thereon and in the case of an equality of votes the

Chairman or other person presiding at such meeting shall have a second or casting vote.

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Subject to the provisions of this Part, the Authority shall have power to make standing orders to regulate its own proceedings.

Members interested not to vote.

Any member who has or acquires, directly or indirectly by himself, his partner or agent –

Any person who contravenes or fails to comply with the provisions of subsection

of this section shall be guilty of an offence and shall be liable on conviction to a fine of one thousand ringgit and imprisonment of six months.

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Power to appoint committee.

Subject to the provisions of this Enactment, the Authority may, for any general or special purpose appoint such committees as it thinks desirable.

A committee may do all such things as may be necessary for the effective carrying out of its functions but shall be subject to the general directions of the Authority.

A committee shall consist of a Chairman and not more than five other persons.

A committee may consist of persons who are not members of the Authority.

Members of a committee may be paid such remuneration or allowance as the

Authority may, with the approval of the Minister, determine.

Meetings of a committee.

In the absence of the Chairman of a committee from any meeting of the committee such other member of the committee as may be elected by the members present shall preside over the meeting.

The quorum for the meeting of a committee shall be three.

Any question to be determined at any meeting of a committee shall be decided by the votes of the majority of those present and voting thereon, and in case of an equality of votes the person presiding shall have a second or casting vote.

A committee may invite to any of its meetings any person who can in its opinion contribute to its deliberations but such a person shall have no right to vote at the meeting.

Subject to this section and the directions of the Authority, a committee shall regulate its own procedure.

Delegation of powers.

The Authority may delegate to any committee, member, officer or servant of the

Authority, such of its functions as it may deem necessary or desirable.

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Any functions delegated under this section –

No delegation made under this section shall preclude the Authority itself from exercising or performing at any time any of the functions so delegated.

Power of Chairman to delegate.

Subject to the provisions of this Enactment and of any regulations made thereunder, the Chairman may delegate in writing to any member, officer or servant of the

Authority the power and authority to carry out on his behalf such duties, powers or functions as he may determine.

The Chairman may at the time of delegating any power or authority under subsection (1) to any member, officer or servant, or at any time thereafter give directions as to the manner in which such delegated power or authority is to be exercised and may at any time revoke, modify or increase such delegation.

Execution of documents, etc..

The common seal of the Authority shall be in the custody of the Chairman and shall not be used except in the presence of the Chairman or Deputy Chairman and one member and such use shall be authenticated by the signatures of such persons and such authentication shall be sufficient evidence that such seal was duly and properly fixed and that it is the lawful seal of the Authority.

All documents, other than those required by law to be under seal, to which the

Authority is a party may be signed on behalf of the Authority by the Chairman or any member or by any officer or servant generally or specially authorised in that behalf by the Authority.

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Vacancy not to invalidate acts, etc..

No act or proceeding of the Authority or any committee thereof shall be questioned on account of any vacancy among the members or on account of the appoint-ment of any member having been defective.

Until the contrary is proved every meeting of the Authority or of any committee thereof shall be deemed to have been duly convened and held and all members present thereat shall be deemed to have been duly qualified.

A statement in any document to the effect that any function has been delegated under this Part shall, unless the contrary is proved, be evidence that such delegation has been lawfully made.

Subject to section 21, the Authority shall appoint a General Manager, with the approval of the Minister, and such other officers and servants as may be necessary for carrying out its functions and duties under the Enactment.

Whenever the General Manager is prevented by illness, absence from the State, or other like cause from performing his duties as such, or when the office of General

Manager is vacant, the Authority may appoint one of its officers to perform the duties of

General Manager during such period as the General Manager is so prevented from performing his duties or the said office is vacant.

Subject to the approval of the Government, the General Manager and other officers and servants of the Authority shall be engaged on such terms and conditions as the

Authority may think fit.

Restriction on alterations in establishment.

The General Manager shall be the chief executive officer responsible to the

Authority and shall perform such duties and exercise such powers as may be determined or delegated by the Authority.

Subject to the directions and control of the Authority, all officers and servants of the Authority shall be under the administrative control of the General Manager.

Officer or servant not to be interested in contracts.

No person shall be eligible for employment as an officer or servant of the

Authority who has, directly or indirectly, by himself or his partner, any share or interest in any contract with, for or on behalf of the Authority.

Any officer or servant of the Authority who has or acquires any such share or interest shall be liable in the discretion of the Authority to summary dismissal without notice.

No officer or servant shall be deemed to have or acquired any such share or interest by reason only that—

to encourage, promote, stimulate, improve, coordinate, regulate and control

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forest products and forest product activities including the effective and efficient utilization of forest products; the improvement of the methods of exploiting forest products; the planting, maintenance and harvesting of forest plantations; grading and quality control; methods of operation, business and marketing;

in relation to forest, forest products and forest product activities—

to carry out or supervise the development of suitable areas from which timber has been extracted and other suitable areas including planting or replanting;

to encourage, promote, supervise and undertake afforestation and reafforestation to supplement the production of timber from natural forests;

to carry out the development of forestry-based settlement schemes through implementation of afforestation and reafforestation to uplift the socio-economic standards of the rural populace.

General powers of the Authority.

to authorise any department of the Government of the Federation or the State or any person or organisation to employ any agent to carry out any work or perform

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any act in furtherance of the objectives and functions of the Authority which the

Authority is competent to perform and which is approved by the Authority;

to appoint such technical advisers as it may deem necessary and to permit such advisers to attend at any meeting of the Authority:

Provided that such advisers shall not vote at any such meeting;

to carry on the business of forest product including timber merchants, contractors, carriers of passengers or goods by land or sea, dealers in forest products including timber or wood products and to carry on any other business whatsoever which in the opinion of the Authority, is desirable for the purposes of the Authority;

to do anything for the purpose of—

improving the skill of employees of the Authority;

to provide houses, hostels and other like accommodation including convalescent or holiday homes, club houses and playing fields for employees of the Authority;

to make and guarantee loans to the employees of the Authority for such purposes as the Authority may approve;

to promote generally the welfare of employees of the Authority;

to provide means to facilitate the improved processing and marketing of forest products including timber;

to conduct surveys and investigations in respect of all matters associated with its functions;

to prescribe schemes for the processing and marketing of forest products

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including timber by any public or private body or person and to give assistance to any such body or person, including financial assistance by way of grant, loans or otherwise;

to form companies either wholly owned or as joint ventures and to enter into equity participation in all activities related to its functions with the public or private body or person;

to receive, in consideration of the services rendered by it, such commission or payment as may be agreed upon;

to carry on any other activity which appears to the Authority to be necessary, advantageous or convenient for or in connection with the discharge of its functions.

There shall be established a Fund to be known as the ―Sabah Forestry

Development Authority Fund‖ which shall consist of—

The Fund may be applied in defraying the following charges—

The balance of the revenue and income of the Authority shall be applied for the creation of a general reserve or such other reserves or capital funds as the Authority may deem appropriate.

Investment of funds.

The Authority may, from time to time, with the approval of the Minister of

Finance, borrow money by the issue of debenture stock or otherwise as the Minister of

Finance may direct for the purposes of this Enactment.

The Authority may, from time to time, for the purpose of this Enactment, raise loans from the Government, or with the consent of the Minister of Finance, borrow by way of a temporary loan or overdraft from a bank licensed under the provisions or the Banking and

Financial Institutions Act 1989  [Act 372.] or otherwise.

Loans may be secured by mortgage.

Subject to such conditions as the Minister may deem fit to impose in particular cases, the Authority may, out of the Fund make loans in accordance with the provisions of this Enactment in that behalf, in the execution of its duties or in the discharge of its functions under section 24.

In making loans under the provisions of subsection (1) the Authority may charge such rate of interest as it may deem fit in any particular case.

Every loan shall be repaid to the Authority in accordance with the terms and conditions under which such loan was made and the moneys so paid shall thereupon be taken into the accounts of the Authority.

Every mortgage to secure loan and every instrument or charge under the provisions of this Enactment shall be approved by the Authority, and all costs, charges and

 ―Banking and Financial Institutions Act 1989‖ substituted for ―Banking Act 1973‖ by virtue of Act 372.

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expenses incurred in connection therewith shall be paid by the person to whom the loan is made.

Power to guarantee loans.

The Authority shall before the commencement of each financial year cause to be prepared and shall adopt annual estimates of income and expenditure of the Authority for the ensuing year.

Supplementary estimates may be adopted by the Authority at any of its meetings.

A copy of all annual estimates and supplementary estimates shall, upon their adoption by the Authority, be sent forthwith to the Minister for his approval.

No expenditure shall be incurred by the Authority which has not been included in the annual estimates or supplementary estimates adopted by the Authority and approved by the Minister.

Accounts.

The Authority shall cause –

The annual statement of accounts of the Authority shall present a true and fair view of the financial position of the Authority, and of the results of the operations of the

Authority for the year to which it relates.

The financial year of the Authority shall be the period commencing on the 1st

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day of January and ending on the 31st day of December in each year.

Audit and statement of accounts.

The accounts of the Authority shall be audited by the Auditor-General.

The Authority shall not later than the 31st day of July of each year submit the accounts of the Authority for the preceding financial year to the Auditor-General for the purpose of audit.

The Authority shall, when required by the Auditor-General, produce and lay before him all books and accounts of the Fund concerned, together with all vouchers in support thereof, and relating thereto, and the Auditor-General shall be entitled to require from the Authority, or any member, officer, servant, or agent of the Authority such information and explanation as he may deem necessary for the performance of his duties as an auditor.

After the end of each financial year, as soon as the accounts of the Authority have been audited, the Authority shall cause a copy of the statement of accounts, together with a copy of any report made by the Auditor-General on that statement or on the accounts of the Authority, to be sent to the Minister who shall lay the same before the Legislative

Assembly and cause a copy thereof to be published in the Gazette.

Annual report.

All moneys paid to the Authority shall be paid into an account in such bank or banks licensed under the provisions of the Banking and Financial Institutions Act 1989 [Act 372.] as may be approved by the Authority.

 ―Banking and Financial Institutions Act 1989‖ substituted for ―Banking Act 1973‖ by virtue of Act 372.

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All orders against the said account shall be signed by the General Manager and countersigned by another officer of the Authority authorised in writing in that behalf by the

Authority.

When tenders to be called.

The Minister may give to the Authority directions of a general character, not inconsistent with the provisions of this Enactment, as to the exercise and performance by the

Authority of its functions and the Authority shall give effect to any direction so given.

The Authority shall furnish the Minister with such information with respect to its property and activities as he may from time to time require.

Land acquired compulsorily.

Where any immovable property, not being State land, is needed for the purposes of the Authority and cannot be acquired by agreement, the Authority may request and the Yang di-Pertua Negeri may, if he thinks fit, direct the acquisition of such property, and in such case, such property may be acquired in accordance with the provisions of any written law relating to the acquisition of land for a public purpose and any declaration required under any such law that such land is so needed may be made notwithstanding that compensation is to be paid out of the funds of the Authority, and such declaration shall have effect as if it were a declaration that such land is needed for a public purpose made in accordance with such written law.

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When any land is acquired compulsorily by the Government at the request and for the purposes of the Authority under the provisions of any written law for the time being in force relating to such acquisition—

The Yang di-Pertua Negeri may at any time by order vest any State land or movable property of the Government in the Authority where it appears desirable to do so to enable the Authority to carry out its duties and responsibilities.

Property vested in the Authority under this section may be so vested absolutely or subject to such terms and conditions as the Yang di-Pertua Negeri may think fit to impose.

Where any land is vested in the Authority under this section a delivery of a copy of the order concerned shall, notwithstanding any provision of any State law to the contrary, be sufficient authority to any public officer charged with the responsibility for registering dealings with land or the issue of title thereto, and any such officer shall thereupon, without payment of fee, take all necessary steps to perfect the title of the Authority to such land.

Emergency powers of General Manager.

the General Manager shall not take any step under this section in contravention

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of any resolution of the Authority duly passed at a meeting; and

he shall report anything done under this section to the next following meeting of the Authority.

Power of suspension of executive functions.

Except for the purposes of this Enactment or of any criminal proceedings under this Enactment, no member, or officer or servant of the Authority shall disclose any information with respect to any individual business, which has been obtained by him in the course of his duties and which is not published in pursuance of this Enactment.

Any person knowingly contravening the provision of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding one year.

Protection against legal proceedings.

No action, suit, prosecution or other proceedings shall be brought or instituted personally against any member of the Authority or against the officer or servant appointed by the Authority in respect of any act done or statement made bona fide in pursuance or execution or intended execution of this Enactment.

Where a person is exempted from liability by reason only of the provision of this section the Authority is liable to the extent that it would be if such person were a servant or agent of the Authority.

Public servants.

The Sabah Forestry Development Authority Enactment 1976 [En. No. 20/1976.] is hereby repealed.

Notwithstanding the repeal of the Enactment specified in subsection (1) –

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