Felda Palm Industries' effluent discharge conviction overturned, RM18,000 fine

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Felda Palm's effluent conviction overturned

Highlights

The Court of Appeal overturned Felda Palm Industries' conviction and RM18,000 fine over doubts about the handling and preservation of effluent samples.
The three-judge panel ordered the RM18,000 fine to be refunded because the company's analysis showed lower three-day biochemical oxygen demand readings than those alleged by the prosecution.
The ruling highlights the importance of strict sample chain-of-custody requirements and scientific evidence in environmental quality enforcement in the palm oil milling sector.

This article was translated from the original. Read the original version by our correspondent here.

Basis for the court's appeal decision

As reported by The Edge Malaysia, a three-judge Court of Appeal panel comprising Datuk Azman Abdullah, Datuk Noorin Badaruddin and Datuk Meor Hashimi Abdul Hamid allowed the company's appeal to set aside the Sessions Court's decision, which had previously convicted the company and imposed the fine.

Delivering the unanimous decision, Azman said doubts over the Department of Environment's handling and preservation of the effluent samples undermined the accuracy of the Department of Chemistry Malaysia's analysis. He also said the company had submitted its own analysis results, which showed lower three-day biochemical oxygen demand readings, while the prosecution had presented no rebuttal evidence.

The court also ordered the RM18,000 fine paid by the company to be refunded.

Background to the charge and implications for the palm oil sector

The charge against Felda Palm Industries concerned allegations that the company discharged effluent with a three-day biochemical oxygen demand of 130 mg/l at a temperature of 30°C, exceeding the 100 mg/l limit prescribed under the Environmental Quality (Prescribed Premises) (Crude Palm Oil) Regulations 1977 and its licence conditions. The offence was alleged to have occurred at the Selancar 2A Palm Oil Mill, Felda Selancar 2 Scheme, Rompin district, Pahang, at 10.45 a.m. on 24 July 2018.

The case went through several stages of judicial proceedings before Wednesday's appeal ruling. On 17 Sept 2021, the Kuantan Sessions Court discharged and acquitted the company without calling it to enter its defence at the close of the prosecution's case. However, on 14 Jan 2022, the High Court allowed the prosecution's appeal and ordered the case to be remitted to the Sessions Court for the company's defence. On 8 Aug 2023, the Sessions Court convicted Felda Palm Industries and imposed a RM18,000 fine, with a 30-day prison term in default of payment. The High Court subsequently dismissed the company's appeal and upheld the decision on 16 Jan this year.

The Court of Appeal's decision highlights the importance of the chain of custody for samples and the strength of scientific evidence in environmental enforcement involving palm oil mill operators. Selancar 2A palm oil mill manager Muhammad Azam Raja Ibrahim appeared on the company's behalf at Wednesday's proceedings, while the prosecution was represented by Deputy Public Prosecutor Mohamed Aznin Mohamed Ariff and the company by lawyers Datuk Habizan Rahman Habeeb Rahman, Sarina Alwi and Hanif Asyraf Mohd Salleh.

Previously, we reported on Malaysia's November reference price for crude palm oil and the unchanged 10% export duty.

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