24/04/2009 (Bernama), Bangi - The Malaysian Palm Oil Board (MPOB) Friday exposed unlawful sale of illegal oil palm seeds and forging transaction documents bearing logos of Sime Darby Plantation Bhd and Felda Agriculture Services Sdn Bhd.

The seeds are supplied to estate owners and oil palm smallholders.

MPOB director-general Datuk Dr Mohd Basri Wahid said his enforcement officers conducted a raid at Ulu Keratong 3 in Pahang on April 15 and seized 3,000 young plants newly grown from a seed packed in boxes bearing the logo of Felda Agriculture Services.

"The seized seeds is believed to be part of the bookings for a replanting project at the Keratong cluster estates covering 2,490 hectares," he told a media conference here today.

Mohd Basri said 460,990 seeds are needed for the replanting project.

With the seizure, MPOB has identified the new modus operandi of a syndicate out to deceive buyers and the authorites by faking the boxes and plastic packages stamped with the logo and address of a company licensed to produce oil palm seeds.

On April 16, MPOB enforcement officers raided the premises of an illegal oil palm seed seller at Sungai Lang, Banting, where several packages stuffed with oil palm seeds bore the logos of Sime Darby and Felda Agriculture Services.

Falsified transaction documents were also confiscated from the scene for further investigations, he said.

"The value of the 200,000 seized seeds is estimated at RM430,000," he said.

Mohd Basri said the case is being investigated under Regulation 5 of the Malaysia Palm Oil Board (Licensing) Regulations 2005 for storing and removing oil palm planting materials without a valid licence.

The offenders are liable to be fined RM200,000 or serve a jail term of not more than three years or both, upon conviction.

Since May 2008, twenty-four raids were conducted on suspected sellers of illegal and non-quality oil palm seeds.

From them, the MPOB law enforcers seized 6.13 million young plants newly grown from seeds worth RM11.35 million based on current market price.

Eight cases are being tried in court now, Mohd Basri said.

The total number of confiscated seeds can be used to replant 40,885 hectares and if the seeds are planted, 10,221 smallholders would incur RM278 million losses a year in terms of yield, he said.

"With a 25-year economic lifespan of an oil palm tree, a smallholder has to bear RM6.95 billion losses," he added.