KUALA LUMPUR (Sept 13): East West Horizon Plantation Bhd, which manages oil palm plantation schemes, and its officers Dr Jessie Tang and Terrence Mark, were charged in the Sessions Court on Friday for alleged trust deed violation.

They pleaded not guilty to the three charges under Section 45(1)(f) of the Interest Schemes Act 2016, and claimed trial after the charges were read, according to a statement by the Companies Commission of Malaysia (SSM), which enforces the Act.  

East West Horizon — which operates an oil palm plantation in Sabah known as the East West Horizon Planter’s Scheme — and its officers allegedly breached a clause in the trust deed dated Dec 24, 2012, read together with a second supplemental trust deed dated Jan 23, 2015, SSM alleged in the charge sheet.

The company was accused by SSM of not depositing RM9.65 million into a designated reserve fund trust account held by Pacific Trustee Bhd by Jan 1, 2023, intended as the monthly net return payment for the first quarter of 2023 to its investors.

If convicted, they face imprisonment of up to three years, or a maximum fine of RM500,000, or both.

Judge Norina Zainol Abidin has scheduled the next case mention for Oct 15, 2024, during which documents will be served, and the charges re-read.

The prosecution was handled by Mohd Zulkhairi Kamaruzaman, Faizal Mahdi Mahmud and Liyana Amira Kamaludin from SSM, while the three accused were represented by Mohd Haziq Dhiauddin Razali.

East West Horizon acknowledged the case brought against the company and its officers and said that the company is prepared to defend against the charges in court.

“We wish to assure all stakeholders and investors that East West Horizon will continue to cooperate fully with the ongoing investigations conducted by SSM,” the company said in a statement.

At a planters’ meeting held on Aug 12, 2024, a majority of planters approved a rehabilitation-and-restructuring exercise. “This approval allows the company to begin rehabilitating the plantation assets to restore their value and ensure long-term sustainability,” the statement added.

Meanwhile, East West Horizon Planter’s Scheme is the second planters’ scheme launched by East West One Group. Covering a landbank of 11,670 acres in Sabah, the scheme has similar investment features as its first East West One Planter’s Scheme.

SSM also reminded the public to exercise caution and verify the legitimacy of any investment schemes offered by any companies or businesses, with the relevant authorities.