Farmers’ co-op office seized over debt

Fertiliser firm makes bid to recover more than RM18mil in unpaid dues

KUALA LUMPUR: A government-backed farmers’ co-operative has had one of its offices seized, in a bid by a fertiliser company to recover more than RM18mil in debt.

Court bailiffs took inventory of all items in the Koperasi Pekebun Kecil Getah Nasional (Narsco) Bhd office in Ampang, following a writ of seizure and sale by Consolidated Fertiliser Corporation Sdn Bhd.

Although the bailiffs have the power to seal the premises to prevent removal of assets, they allowed the co-operative to continue its business, with the items to be placed on public auction within 14 days.

Following an inspection on Monday, Narsco general manager Che Din Akir and lawyer Alex Anton Netto, who is acting for Consolidated Fertiliser, confirmed the inventory.

Narsco is the parent body of 64 small farmers’ co-operatives and is a governmental statutory body found- ed by Rubber Industry Smallholders Development Authority.

The Rural and Regional Development Minister Datuk Seri Ismail Sabri Yaakob has reportedly said that Narsco recorded RM19.6mil in profits for 2016, with the co-operatives under it having stocks amounting to RM48.3mil.

According to court papers sighted, the debt is the result of non-payment for fertiliser supplied between April 1, 2008 and Jan 27, 2010, valued at RM7,888,010.88.

Despite the co-operative paying RM228,480.00 towards the debt, Consolidated Fertiliser filed a notice of claim on April 19, 2010, demanding the outstanding amount.

The company said that despite the co-operative affirming an audit of the amount owed, it made no further payments.

Consolidated Fertiliser then sued Narsco in the Shah Alam High Court where Justice Zainal Azman Ab Aziz ruled in its favour and granted its request for payment of RM7,432,198.38, plus interest.

In the June 18, 2012, decision the court found that the case was “simple, clear and could be resolved via a summary judgment,” meaning a conclusion could be reached without requiring a trial.

However, Narsco still did not settle its dues .

According to a writ by Consolidated Fertiliser dated Oct 9, the amount has now ballooned to RM18,261,656.24 due to accumulated interests.