This article first appeared in The Edge Financial Daily on May 14, 2019

KUALA LUMPUR: A plantation belonging to PT Eagle High Plantations Tbk (EHP), in which the Federal Land Development Authority (Felda) owns a 37% equity stake, has received a Roundtable on Sustainable Palm Oil (RSPO) accreditation, according to reports from Indonesian news portals.

Citing a release by the plantation group, the reports wrote that EHP had received an RSPO certificate for its plantation in Kumai, Kotawaringin Barat District in Central Kalimantan at the weekend. This is the first plantation belonging to the group that received the certification, one of the reports noted.

Quoting EHP sustainability director Denys Collin Munang, news portal WartaEkonomi.co.id said the receipt of the certificate is a testament to the company’s commitment to sustainability.

“The acceptance of this RSPO certificate marks the achievement of one of our goals to ensure the company’s operational activities are balanced, and supports the 17 sustainable development goals,” he said.

The recent development has posed some questions over Felda’s decision to exercise a put option to sell back the 37% stake in EHP to vendor PT Rajawali Capital International, owned by Indonesian businessman Tan Sri Peter Sondakh.

It was previously reported that Felda’s board of directors exercised the put option in a letter dated Jan 3, 2019, on the grounds that Rajawali failed to meet key conditions, including securing the RSPO certification by end-2019.

In April, Felda director-general Datuk Dr Othman Omar filed a police report claiming the agency was cheated into entering a one-sided deal for the sale and purchase of the equity stake in EHP.

He claimed then-prime minister and finance minister Datuk Seri Najib Razak had directed Felda to acquire EHP, alleging the purchase of the shares was offered to several agencies, including FGV Holdings Bhd, the Malaysian Palm Oil Board and the Malaysian Rubber Board, before it was “forced” on Felda.

Rajawali declined to comment on the matter when contacted, while attempts to contact Felda went unanswered.