KUALA LUMPUR (Aug 7): The hearing for the investors of the Golden Palm Growers scheme, which is being wound down by its operator Golden Palm Growers Bhd (GPG), has been set for Sept 26.
The investors have claimed that the investment scheme, which involves the investors or 'growers' pooling money for the operation of a plot of oil palm plantation land in Kelantan, is a Ponzi scheme.
The court room was packed with frustrated investors, mostly retirees, as well as some asset managers from overseas, expecting the hearing to begin today.
After an in-chambers application with the lawyers before Justice Ong Chee Kwan, the growers seated in the public gallery were told by lawyer Jerry Ling, who is representing the plaintiffs in the action, that the hearing will only be on Sept 26.
"[GPG] has filed an application for the scheme to be wound down, based on the voters' decision for it to be closed down. We can only intervene in that action as an intervener," Ling told reporters following the conclusion of the proceedings in chambers.
GPG had in October 2017 held a general meeting whereby 98% of the growers had voted in favour of giving the company one year to look for a suitable buyer for the Kelantan plantation, as opposed to an immediate sale to recover their capital.
In April this year, the company held another general meeting, in which the growers had voted against granting an extended realisation period for the sale of the land to June 30, 2019, from the previous deadline of Jan 1, 2019.
Following this, GPG filed an application to the High Court to wind up the share farming scheme.
"They filed the application to wind up based on the voters' decision that the scheme should be closed down.
"If the scheme is closed based on GPG's application — that it was a valid and not an illegal scheme — the investors will get nothing. We are saying that it is an illegal scheme and that the scheme should be wound down and monies returned to the investors," Ling told reporters following the conclusion of the proceedings in chambers.
He added that the Companies Commission of Malaysia (CCM) has also initiated investigations against GPG.
The investment scheme entails the pooling of money from the growers to support oil palm-related operations at the Kelantan plantation, with GPG promising a return of 6% per annum during the first phase of the scheme, which was over a six-year period starting 2010.
Several growers told theedgemarkets.com that they did receive the 6% payment for the first phase, but GPG seemed to have some difficulty in supporting the scheme in the seventh year.
"I invested about RM30,000 of my EPF money in the first phase and I put in another RM90,000 for the second phase. And now I only have RM30,000 left in my EPF. I'm 70 and already retired. How am I going to live?" said one investor.
Meanwhile, an asset management fund from Japan was said to have invested some RM5 million in the scheme as well.
In total, the growers have invested a total of RM218.55 million in the scheme and only got back 6% of the amount or RM78.48 million in return for their investment.