Press Statement : Poultry waste been brushed under the carpet

[click here for chinese version press statement]

"The initiative to reduce fly in chicken farm was good, but was then misunderstood as making things difficult for chicken farmers," Mentri Besar Datuk Abdul Ghani Othman said in an agriculture technology seminar held in Serom MARA College on 3rd February 2012.

"The Authorities want to provide fly elimination solution in exchange for chicken waste from the farm. It can be used to procure organic fertilizer and it will bring benefit to the farming industry. There is no other intention"[1]

The incident happened on 30st November 2011 when The farmers claimed that the state Veterinary Services Department issued the order after they had refused to let a private company collect chicken waste from their farms.[2]

I began my investigation on this case after the local newspaper exposed the said incident and hereby is my discovery:

Fig. 1 latter release by Johor Veterrinary Services Department

1. On 14th November 2011, Johor Veterinary Services Department (Jabatan Pekhidmatan Veterinat Negeri Johor) released an invitation letter and requested poultry farmers from Segamat District to attend a introductory seminar on 30th November 2011.

According to the latter (Fig. 1), the Department will implement Poultry Effluent Reprocessing Fly Elimination Control Technology (PERFECT) and it will be handled by a company which had been identified by the Department.

Fig.2 SSM registration record of Euroala Organics Sdn. Bhd.

The company which had been identified as the exclusive service provider is Euroala Organics Sdn. Bhd. (SSM no. 776232-W)(Fig.2). The company's registrarion date was 7th June 2007 and the nature of business of this company was "provision of aviation light sport".

On 17th November 2011, the company renamed from Euroala Asia Sdn. Bhd. to Euroala Organics Sdn. Bhd. The company renamed date was approved by SSM three days after the Department released the latter to the poultry farmers.

Fig.3 Business collaboration condition set by Euroala Organics Sdn. Bhd.

2. According to Memorandum of Agreement prepared by Euroala Organics Sdn. Bhd., item (2.1) (Fig.3) mentioned that EUROALA shall be the exclusive party to undertake the Green Technology with Microbial Approach to handle and control the poultry waste in farmer's farms. And under item (2.2) mentioned that the farmer who sign for the MOA will agree to grant EUROALA the exclusive rights in relation to the handling, treatment and subsequent collection of all poultry waste.

Fig. 4 Euroala Organics Sdn. Bhd. will be granted the exclusive right for the collection of poultry waste  

In item (4) (Fig.4) mentioned that the agreement shall be effective as of the date of signiture hereof and shall remain in force for a period of ten years and shall be automatically renewed for another fiveyears.

Fig.5 Euroala Group Limited record from ICRIS Hong Kong

3. Euroala Organics Sdn. Bhd.'s parent company is Euroala Group Limited, an Hong Kong registered company. According to ICRIS inquirey, the company own a Chinese name 『天航集团有限公司』(Company Registration no : 1127826)(Fig.5).

This Hong Kong based company won by a Malaysian named Chew Keat Soon (Malaysian Passport: A10666337).

Fig.6 Directors list of Euroala Organics Sdn. Bhd.

Euroala Organics Sdn. Bhd.has three directors[Fig.6], they are:

Wong Kim Fah@Vong Kim Fah  (NRIC：490502-06-5506)
Lai Ying Choy  (NRIC：560815-10-6507)
Kan Choy Yuen  (NRIC：580831-10-5991)

Chew Keat Soon is the founder of MTrans Transportation Systems Sdn. Bhd.[3] On April 2006, Scomi Engineering Bhd ("Scomi Engineering"), a company listed on the Second Board of Bursa Malaysia Securities Berhad has completed its acquisition of MTrans Transportation Systems Sdn Bhd ("MTrans"), making it a subsidiary of the company.[4]

According to the annual report of KL Infrastructure Group (KL Infra) from BURSA[5], page 2 indicated that:

Lai Ying Choy is the executive director and Wong Kim Fah@Vong Kim Fah is the managing director.

According to a Railway Technology website[6],"In 2007, the monorail was acquired by SPNB, as KL Infra incurred losses over the years due to depreciation and loan interest payments. There have been no significant changes or extensions to the line since 2003."

Conclusion

According to first findout, why Johor Veterinary Services Department authorized a company who does not have related experience before date 17th of November 2011, as the exclusive service provider to provide PERFECT technology?

why this company change it's nature of business just two weeks before the seminar start? How can a company which was "provision of aviation light sport" handle Green Technology, and obtained and regconized by the Department in within two weeks time?

Why does Johor Veterinary Services Department allow a company which has it's parent company which is overseas registered to handle this project?

According to second findout, why does a company which has only started its business for two weeks can obtain the athorization from the Department as the exclusive party to undertake all poultry waste?

Who handled the verification of the qualification of this vendor? What standard did they use for the verification?

Is Kamarudin Bin Md. Isa, Director of Johor Veterinary Services Department had any conflict of interest in this case?

According to third findout, This company has its parent company registered in Hong Kong. Three of the company directors are close to KL Monorail project and SCOMI Engineering is controlled by Ex-PM Tun Abdullah Ahmad Badawi's eldest son, Kamaluddin Abdullah.

How does Johor Veterinary Services Department justify if the company has rich experience in the related field, in order to prove it can be involved in stated-wide project.

The Agriculture and Agro-based Industry Ministry deputy minister Datuk Chua Tee Yong has yet to explain to the public what the background of this company and the public can reasonably believe that Johor Veterinary Services Department has a conflict of interest to this company internally.

MP Bakri
Er Teck Hwa
2012.02.10

Full Documentation Download:

[A]Johor Veterinary Services invitation latter and MoA betwwen farmers and Euroala Organics (PDF)

[B]SSM record of Euroala Organics Sdn Bhd (PDF)

Reference:

[1]Sin Chew Daily 柔州大臣：兽医局好意遭误解‧鸡粪换药为减少苍蝇

[2]Poultry farmers upset over order to shut down

[3]Wikipedia:Wong Jeh Shyan
“He is often seen with MTrans founder Mr. David Chew Keat Soon, who continue to control MTrans International Limited of Hong Kong. ”

[3]Merdeka Review 马资源组合获槟单轨意向书　料开销增多斯可米受惠最大

[4]SCOMI official website
"Scomi Engineering Bhd ("Scomi Engineering"), a company listed on the Second Board of Bursa Malaysia Securities Berhad has completed its acquisition of MTrans Transportation Systems Sdn Bhd ("MTrans"), making it a subsidiary of the company."

[5]KL INFRA Annual Report (2005)

[6]Railway Techonlogy website
"The construction of the KL Monorail was planned by Hitachi in 1997, but was put on hold in December 1997 due to the East Asian financial crisis. Monorail Malaysia, (MTrans), a monorail manufacturer, took over construction in July 1998, and manufactured its own rolling stock to reduce cost. The project was estimated to have cost MYR1.18bn (approx $375m)."

"The KL Monorail system has a separate maintenance depot of 14,800m2 and a separate sub-station for depot operations."

"KL Infrastructure Group (KL Infra), the original owner of the project, held a 40-year concession to operate the rail system."

"In 2007, the monorail was acquired by SPNB, as KL Infra incurred losses over the years due to depreciation and loan interest payments. There have been no significant changes or extensions to the line since 2003."