By Chan Quan Min
(L-R) Lee Kim Heong, Mr Jayadevan A/L Raghav Menon, Tan Sri Lee Kim Yew and Susan Liew Pik Yoong
Final ‘voluntary termination’ payments were issued today in a media conference called by the management company of the beleaguered Country Heights Grower Scheme.
The country’s first oil palm plantation collective investment scheme or ‘interest scheme’ issued the termination payments in three tranches to CIMB Commerce Trustee.
The Trustee has agreed to facilitate the distribution of the termination payment to the Scheme’s investors or ‘growers’ who number more than 10,000.
Today’s payment by the management company of the scheme, Plentiful Gold-Class to CIMB Commerce Trustee comprised a 90% capital refund of RM182.9 million, unclaimed monies with regard to the first 10% capital refund and a goodwill payment of RM25 million by Lee Kim Yew, the founder and head of the Country Heights Grower Scheme.
The dismantling of the scheme was announced in February this year in a heated meeting with the Scheme’s investors.
During the February meeting, Lee reportedly agreed to give in to the demands of the investors and Malaysian Shareholder Minority Group (MSWG) for a full refund of the capital amount with an interest payment of 12%.
Instead of the proposed one-year period to settle the termination payments, Lee gave in to calls by the growers’ and MSWG to cough up the money in six-months-time.
In today’s media conference, the elected chairman representing the investors, Jayadevan Raghav Menon thanked Lee for the termination payment saying he was grateful for the full return of investors’ capital.
Despite the early termination of the Scheme and a personal compensation of RM25 million to the Scheme’s owners, Lee said he still believed the Scheme, his brainchild, was a “good idea.”
Lee said the value in the Scheme was that it was land-backed, implying that the investment had an intrinsic value for its investors.
“With this payment, our responsibilities are fulfilled based on the outcome of the general meeting held on Feb 8, 2013 and all growers are set to gain back their capital, plus up to 48% net yield payment paid earlier and a further RM25 million goodwill payment,” said the company management in a statement today.
The same statement quoted Lee, in the February general meeting as having said, “the interference of MSWG has brought on public pressure, reputation risk, negative publicity and the misunderstanding of all the growers…
“To me what Plentiful Gold-Class (the management company) has done and its efforts are definitely worth more than what has been perceived by the public.”
According to Lee, the Gua Musang tract of plantation land has not yet been sold. As such the company is relying on its own funds to settle the termination payments.
Investors or growers are set to receive a total payout of over RM319 million as opposed to RM189.5 million raised by the Scheme, after excluding commissions of RM26 million to marketing agents, many of whom are growers.
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