Raided over date palm scheme
SSM checks on two firms offering investment in trees illegally
KUALA LUMPUR: For RM3,000 to RM5,000, a company offered investments in date palm plantations in Kelantan, Terengganu and Johor.
Investors were promised that the company would plant and manage the trees until harvest time, and repurchase the dates at RM12 to RM20 a kilo, depending on their size and quality. This was not to be.
Around 10 officers from Companies Commission of Malaysia (SSM) and police raided the headquarters of Date Palm Agro Bhd and Safawi Agro Farm on suspicion that the schemes may be illegal and not registered with the commission.
In a statement, SSM Investigation Division director Rezy Izwan Ramly said potential investors were approached by telemarketers to invest between RM3,000 and RM5,000 in each date palm tree.
SSM deputy chief executive officer Nor Azimah Abdul Aziz said the commission received a complaint against the company in December last year.
“A potential investor wanted to check with us on the validity of the date palm scheme,” said Nor Azimah, adding that investigations revealed that the investment scheme was not registered with SSM.
Saying that SSM’s investigation was preliminary, she said they were still going through the companies’ files.
Nor Azimah and Rezy Izwan said the investment schemes bore preliminary resemblance to an interest scheme, which used to be governed under the Companies Act 1965, and is now under the Interest Schemes Act 2016.
Such schemes need to be registered with the SSM.
“Some companies obtain funding through interest schemes, aside from offering shares or unit trusts which are governed by other laws,” said Nor Azimah.
These interest schemes usually take the form of investment schemes which are generally agriculture-based, recreational memberships such as golf or marina clubs, and timeshare holidays.
Such interest schemes would have several conditions to ensure the plan was genuine, she said.
In March, the Agriculture Department’s Plant Biosecurity Division director said no permit was given to any firm to import date palms, in accordance with the Plant Quarantine Act 1976 and Plant Quarantine Regulations 1981.
He was responding to reports of syndicates soliciting investments in date palm plantations.
A check on Lowyat, a popular Malaysian forum, showed Date Palm Agro’s investment mechanics being discussed in threads dating from 2015, with one poster stating there was a minimum number of trees to invest in.