PERBADANAN PEMBANGUNAN EKONOMI SARAWAK ORDINANCE, 1958

a bank or any financial institution licensed under the Banking and Financial Institutions Act 1989 [Act 372]; or

an Islamic bank licensed under the Islamic

Banking Act 1983 [Act 276]; or

a licensed offshore bank licensed under the

Offshore Banking Act 1990 [Act 443], or any modification or substitution of the said Acts for the time being in force;

[Ins. Cap. A41.]

“General Manager” means the General Manager of the

Corporation appointed under section 39(1), and includes any person who for the time being is appointed pursuant to section 39

to discharge temporarily the duties of the General Manager;

[Ins. Cap. A41.]

“husbandry” includes the keeping or breeding of livestock, poultry or bees and the growing of fruit, vegetables and the like;

“industry” includes any kind of commercial undertaking;

[Ins. Ord. No. 19/71.]

“land” includes any estate or plantation usually, or about to be, cultivated or cleared for purposes of cultivation for producing at least one annual crop, or some permanent crop, or land used otherwise in connection with agriculture;

“member” includes the Chairman and the Deputy Chairman;

[Am. Ord. No. 8/64.]

“Minister” means the State Minister responsible for the

Corporation;

[Ins. Ord. No. 19/71.]

PERBADANAN PEMBANGUNAN EKONOMI SARAWAK

7

“official member” means a person who is the holder of an office of emolument under the Government and is appointed a member of the Corporation under section 4(1):

[Am. Ord. No. 19/71; Am. Cap. A41.]

Provided that no member of the Corporation shall be deemed by reason of that fact only to hold an office of emolument under the Government; “owner” includes guardians, executors and administrators who are, by the instrument appointing them or otherwise, registered under the Land Code [Cap. 81 (1958 Ed.)]

as the proprietors of any land.

The Corporation shall be a body corporate with perpetual succession and a common seal and may sue and be sued in its said name and subject to and for the purposes of this Ordinance, may enter into contracts, and may acquire, purchase, take, hold and enjoy movable and immovable property of every description and may convey, assign, surrender, yeild up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the

Corporation upon such terms as it deems fit.

[Sub. Ord. No. 19/71.]

Constitution of the Corporation

a Chairman;

8

[Deleted Cap. A41];

two official members; and

not less than three but not more than eight other members who in the opinion of the Minister are qualified, by reason of their experience of, and capacity in, matters relating to agriculture, industry, commerce, finance or science, to undertake the duties appertaining to members of the Corporation.

[Sub. Ord. No. 19/71; Am. Ord. No. 6/84.]

[Deleted Cap. A41].

A member shall unless his appointment is sooner resigned or revoked, hold office for such term and subject to such conditions as the Minister may decide, and shall be eligible for reappointment.

A member may at any time resign his office by letter addressed to the Minister.

The appointment of any member may at any time be revoked by the Minister without assigning any reason for it.

The Chairman shall devote such time to the business of the

Corporation as may be necessary to the discharge of his duties.

The Minister may appoint any member of the Corporation to be temporary Chairman of the Corporation during the temporary incapacity through illness or during the temporary absence from the

State, of the Chairman.

If any member of the Corporation, other than the

Chairman, is temporarily absent from the State or temporarily incapacitated through illness or any sufficient cause for the performance of his duties as a member of the Corporation, another person may be appointed in his place by the Minister but shall hold office only during such absence or incapacity of such member.

Disqualification from membership and vacation of seat

if he has been convicted by a court of law of:

any offence involving fraud, dishonesty or moral turpitude;

if he is an undischarged bankrupt; or

if he is of unsound mind or is otherwise incapable of performing his duties.

The seat of a member of the Corporation shall become vacant⎯

Where any member ceases to be a member by reason of any of the provisions of this Ordinance, a person shall be appointed in his place in accordance with the provisions applying in the case of the person who ceases to be a member for the residue of the term for which such person might have held office if he had not ceased to be a member.

[Ins. Ord. No. 19/71.]

Remuneration of members

Until a seal is provided by the Corporation a stamp bearing the description “Perbadanan Pembangunan Ekonomi Sarawak” may be used and shall be deemed to be the common seal.

The common seal or the stamp referred to in subsection (2)

shall be kept in the custody of the Chairman or the General Manager, and shall be authenticated by either of them or by any officer authorised by either of them in writing; and all deeds, documents and other instruments purporting to be sealed with the said seal or stamp, authenticated as aforesaid, shall until the contrary is proved be deemed to have been validly executed:

Provided that any document or instrument which if executed by a person not being a body corporate would not be required under seal may in like manner be executed by the Corporation.

The seal or stamp of the Corporation shall be officially and judicially noticed.

[Sub. Ord. No. 19/71.]

Procedure and meetings of the Corporation

The Chairman may at any time call a special meeting of the Corporation, and shall call a special meeting within seven days of a requisition for that purpose addressed to him by any three members of the Corporation.

The quorum at all meetings of the Corporation shall be a majority of the members among whom there shall be the Chairman who shall preside at such meetings.

The decisions of the Corporation shall be by a majority of votes. In any case in which the voting is equal the Chairman shall have a casting vote in addition to his original vote.

The Corporation may act notwithstanding any vacancy among the members of it.

Proper minutes of each meeting shall be kept by the

Secretary and shall be confirmed by the Chairman as soon as practicable after that at a subsequent meeting.

[Am. Ord. 19/71; Am. Cap. A41.]

The Corporation may co-opt any one or more persons to attend any particular meeting of the Corporation on any matter for the purpose of assisting or advising the Corporation, but such co-opted person shall not have the right to vote.

Subject to subsections (1) to (7), the Corporation shall have power to regulate its own proceedings.

[Am. Ord. No. 19/71.]

Information obtained as a member or officer of the Corporation to be secret and confidential 9.⎯(1)

Every member of the Corporation and every officer of the Corporation⎯

No fee or stamp duty shall be payable or chargeable in respect of any declaration made under subsection (1).

If any member or officer of the Corporation contravenes subsection (1)(a) or (b), he shall be guilty of an offence: Penalty, imprisonment for six months and a fine of one thousand ringgit.

[Am. Ord. No. 8/64; Am. Ord. No. 19/71.]

Nothing in this section shall be deemed to preclude the

Corporation from making, with the consent of an applicant, such inquiries as the Corporation may deem fit in connection with an application made to it by that applicant.

Disclosure by member of the Corporation of interest in transaction with the Corporation, and disqualification 10.⎯(1)

Subject to this section, it shall be the duty of a member of the Corporation who is in any way, whether directly or indirectly, interested in an application to the Corporation for a loan or guarantee under the provisions of this Ordinance, or in a contract or proposed contract with the Corporation, or in any company or firm which is in receipt of, or applying for, such a loan or guarantee or which is so interested in such a contract or proposed contract, to declare the nature of his interest at a meeting of the Corporation.

In the case of such application or proposed contract, the declaration required by this section to be made by a member of the

Corporation shall be made at the meeting of the Corporation at which the question of granting or refusing the application or entering into the contract is first taken into consideration, or if such member is not present at such meeting then at the next meeting which he attends, or if such member was not at the date of such meeting interested in the application or proposed contract or did not on the said date have an interest in any such firm or company as is referred to in subsection

, the said declaration shall be made at the next meeting of the company after he became so interested or acquired such an interest.

For the purpose of this section, a general notice given to the other members of the Corporation by a member to the effect that he is also a member of a specified company or firm and is to be regarded as interested in any application for a loan or guarantee from the Corporation or in any contract which may, after the date of the notice, be made by or with that company or firm, shall be deemed to be a sufficient declaration of interest in relation to any application or contract so made:

Provided that no such notice shall be of effect unless either it is given at a meeting of the Corporation or the member of the

Corporation concerned takes reasonable steps to secure that it is brought up and read at the next meeting of the Corporation after it is given.

No member of the Corporation shall sit or take part in proceedings or vote on the decision of any application to the

Corporation for a loan or guarantee or in respect of any contract or arrangement in which he is interested, whether directly or indirectly, and whether personally or by virtue of an interest in any company or firm, and if he shall vote his vote shall not be counted, nor shall he be counted in the quorum present at that meeting.

A contravention of this section shall constitute an offence:

Penalty, a fine of two thousand ringgit.

Power of the Corporation to establish offices or agencies

The Corporation may, as it thinks fit, at any time and from time to time, alter the boundaries of any area or make a new subdivision of the State of Sarawak into areas.

The Corporation may, as it thinks fit, revoke any appointment made by the Corporation to any local committee, and increase or reduce the number of members of any local committee.

A local committee shall perform such functions as the

Corporation may direct, but not including the grant of a loan or guarantee.

Execution of document

The Corporation shall have power to do all things expedient or reasonably necessary or incidental to the discharge of its duties, and in particular, but without prejudice to the generality of the foregoing—

Where an officer in the public service, who holds a pensionable office within the meaning of the Pensions Act 1980 [Act 227], is appointed to be an officer of the Corporation, the Corporation shall pay to the Government an annual pension contribution at such rate per cent of the officer’s annual emoluments from the Corporation as may, from time to time, be approved by the Majlis Mesyuarat

Kerajaan Negeri and the service of such person while in the employment of the Corporation shall be deemed to be service under the Government and shall be subject to the Pensions Act 1980 as amended from time to time.

[Am. Ord. No. 19/71.]

General powers of Corporation to transact business

Any such committee shall consist of at least two members of the Corporation together with such other persons, whether members of the Corporation or not, whose assistance or advice the Corporation may desire.

Where persons, not being members of the Corporation, are members of a committee appointed under this section or where any person is co-opted under section 8(7), the Corporation may by resolution declare the remuneration and allowances of such persons, and such sums shall properly be payable out of the funds and resources of the Corporation.

[Am. Ord. No. 19/71.]

The Corporation may by resolution reject the report of any such committee or adopt it either wholly or with such modifications, additions or adaptations as the Corporation may think fit.

Delegation of powers of the Corporation

Without prejudice to the generality of subsection (1) the

Corporation may delegate to the Chairman, any of its other members, committees or any officer or servant, authority to sanction expenditure from the funds or any other money under the control of the

Corporation up to such limit as the Corporation shall in such case specify.

[Sub. Ord. No. 19/71; Am. Cap. A41.]

Appointment of valuers and inspectors

The fee of any valuer or inspector shall be fixed by the

Corporation.

Any valuer or inspector appointed under this section may, at all reasonable times, enter upon any lands or premises in respect of which a loan or guarantee has been made or granted under this

Ordinance, and may value or inspect the same, and any person obstructing or causing to be obstructed any valuer or inspector in making such valuation or inspection, whether by force or by threats or in any other manner, shall be guilty of an offence: Penalty, imprisonment for three months and a fine of five hundred ringgit.

Balancing of revenue account and surplus revenue

Any excess of the revenues of the Corporation for any financial year thereof over the sums properly chargeable to its revenue account for that year shall be applied by the Corporation for such purposes as it may, with the approval of the Majlis Mesyuarat

Kerajaan Negeri, determine.

Gifts

Without prejudice to the generality of subsection (1) and subject to consultation with the Corporation, the power of the Minister to give directions shall extend to the giving to it of directions regarding the disposal of capital assets.

[Ins. Ord. No. 19/71.]

such sums as may be provided from time to time for the purposes of the Corporation by the Dewan Undangan Negeri;

[Am. Ord. No. 19/91.]

such sums as may be allocated from time to time to the

Corporation from the proceeds of loans raised by Sarawak;

moneys earned from any project, scheme or enterprise financed from such funds and resources;

[Sub. Ord. No. 19/71.]

all sums from time to time received by or falling due to the Corporation in respect of the repayment of any loan made by the Corporation, and the interest payable in respect of any such loan;

moneys earned or arising from any property, investments, charges and debentures acquired by or vested in the

Corporation;

any property, charges, debentures or investments acquired by or vested in the Corporation;

sums borrowed by the Corporation for the purpose of meeting any of its obligations or discharging any of its functions;

and

all other sums or property which may in any manner become payable to or vested in the Corporation in respect of any matter incidental to its powers and duties.

Interest on any amount specified in subsection (1)(a) shall be paid by the Corporation to the State Government at such rate, if any, as may be determined by the Majlis Mesyuarat Kerajaan Negeri.

[Am. Ord. No. 19/71.]

The annual charges on any amount which may be allocated to the Corporation from the proceeds of loans raised by Sarawak under subsection (1)(b) shall be met by the Corporation:

Provided that all or any part of such charges may, subject to the approval of the Dewan Undangan Negeri, be met from the general revenue of Sarawak.

Borrowing powers

The power of the Corporation to borrow shall be exercisable only with the approval of, and subject to such conditions as may be imposed by, the Minister. Any approval given in any respect for the purposes of this subsection may be either general or limited to a particular borrowing or otherwise.

[Am. Ord. No. 19/71.]

Investments

pay any expenses lawfully incurred by the Corporation, including survey, legal and other fees and costs;

pay any other expense, cost or expenditure properly incurred or accepted by the Corporation in pursuance of its purposes under the provisions of this Ordinance;

pay any amounts which it may lawfully be called upon to pay in respect of its liability under any guarantee assumed or granted under section 14(2)(d) and (h); and

purchase plant, equipment, stores and any other materials, or acquire land or erect buildings, or carry out any other works and undertakings, in the execution of its duty or in the discharge of its functions under section 14, in contemplation of loans to be made for any of those purposes under section 23 so, however, that any sums expended by the Corporation under this paragraph shall be set off against the loans in contemplation of which they were expended upon the actual making of such loans.

[Am. Ord. No. 19/71.]

Expenditure and preparation of Estimates

Before the beginning of September of each year the

Corporation shall submit to the Minister an estimate of the expenses

(including those for development projects) for the following year in such form and containing such particulars as the Minister may require, and the Minister shall before the beginning of the following year notify the Corporation of the amount authorized for expenses generally or of the amounts authorised for each description of expenditure.

The Corporation may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any part of the additional expenditure included in it.

[Ins. Ord. No. 19/71.]

Interest on loans made by the Corporation

postpone the payment of any sum due for principal or interest to it in respect of a loan made by the Corporation upon such terms and conditions, for the carrying out of the purposes for which such loan was made and for the ultimate repayment of such principal or payment of such interest, as it may deem necessary; and

from time to time, extend the period for the repayment of any loan, or compound or release any loan, or any part of it, subject to such terms and conditions as it may deem fit.

Payment of loan before due date

It shall be lawful for the Corporation to enter into agreement, with or without security and on such condition as it thinks fit to impose, with any person dealing in or processing agricultural produce of any kind for the disposal of produce belonging to any person to whom loans shall have been made under this Ordinance in respect of such produce. The Agreement shall provide for the sale without undue delay of such produce and the immediate payment to the Corporation of the proceeds of such sale, or such part of it as the

Corporation shall think fit, to the credit of the person to whom the loan was made.

Any person so entrusted with the disposal of the produce of any person obtaining a loan under this Ordinance who shall fail to pay the proceeds of sale to the Corporation as provided in subsection

shall be guilty of an offence: Penalty, imprisonment for six months and a fine of one thousand ringgit.

Charges to be approved by theCorporation

from time to time, make or cause to be made such examination as may be necessary to ensure that the loan is being applied to the purposes for which it was made; and

require financial statements, in such detail as it may determine, to be submitted by the person, body or authority in receipt of the loan bi-annually, or at shorter intervals at the discretion of the Corporation, and such person, body or authority shall comply with such request.

The Corporation may authorize in writing any of its officers or any other person to make such examination, and the person, body or authority in receipt of the loan shall produce to such officer or person all the books, documents and other matters and things necessary for the purposes of the examination.

Any person who fails to comply with subsection (1)(b) or subsection (2) shall be guilty of an offence: Penalty, imprisonment for six months and a fine of one thousand ringgit.

Order of the Corporation upon such examination

any sum of money, whether principal or interest, due in respect of any loan made under this Ordinance remains unpaid;

in the opinion of the Corporation, any prior loan made under this Ordinance has not been applied for the purpose for which it was made, or has not been carefully and economically expended;

the borrower has become insolvent or has been sentenced to a term of imprisonment without the option of the payment of a fine, or has assigned his estate for the benefit of creditors;

there has been a breach or non-observance of any condition attached to the loan; or

in the opinion of the Corporation, the sums already advanced were not applied to the purposes for which the loan was made within a reasonable time, then, without prejudice to any other remedy, the Corporation may, or, as the case may be, the financial institution or other financial source may, refuse to advance any portion of the loan still outstanding.

[Am. Ord. No. 1/79; Am. Cap. A41.]

Misapplication of loan secured by charge or otherwise

If any loan made under this Ordinance or any part of such loan has been misapplied the Corporation may⎯

Where any loan by a financial institution or other financial source is secured by a guarantee by the Corporation, no such loan or any part of it shall be applied otherwise than for such purposes as shall have been approved by the financial institution or other financial source, the State Government and the Corporation at the time of the grant of such loan, and, if such loan or any part thereof shall have been applied otherwise than for purposes so approved, then, the financial institution or other financial source may exercise any of the powers conferred on the Corporation by subsection (2).

[Am. Ord. No. 1/79; Am. Cap. A41.]

Subsection (2) shall be in addition to any other proceedings under any written law.

Enforcement of securities

For the purpose of discharging his duties and functions under subsection (1), the Chairman shall—

The Chairman shall perform such other or further duties as the Minister may, from time to time, determine or prescribe.

If the Chairman is temporarily absent from Sarawak or temporarily incapacitated through illness or for any other sufficient reason from the performance of his duties, the General Manager shall perform his duties (in addition to the General Manager’s duties)

during such temporary absence or other incapacity.

General Manager to be principal executive officer

[Deleted Cap. A41].

Subject to the direction of the Chairman, the General

Manager shall have administrative control of the officers and servants of the Corporation.

The General Manager shall perform such other or further duties as the Corporation or the Minister may from time to time determine or prescribe, or as the Chairman may from time to time direct.

If the General Manager is temporarily absent from

Sarawak or temporarily incapacitated through illness, or any other sufficient reason from the performance of his duties, the Chairman, with the approval of the Minister, may appoint another officer of the

Corporation to perform his duties during such temporary absence or other incapacity.

Appointment of officers and servants

Any officer or servant of the Corporation who has or acquires any such share or interest shall be liable in the discretion of the Corporation to summary dismissal without notice.

If any officer or servant of the Corporation shall at the time of his appointment as such officer or servant already own or control any share or interest in any property which subsequent to his appointment as such officer or servant is included or is intended to be included in any contract or proposed contract with, for or on behalf of the Corporation, he shall disclose the same in writing to the

Corporation.

Power to dismiss officers and servants and dispose of questions as to their pay, etc.

Subject to any standing orders made under section 43, the power of promoting, suspending, dismissing, fining, reducing or granting leave to the officers and servants of the Corporation shall be exercised by the General Manager:

Provided that in the case of officers and servants whose monthly salary exceeds five hundred ringgit, such powers, with the exception of the power of suspension, shall not be exercised without the previous approval of the Corporation.

The power of dispensing with the services of any officer or servant of the Corporation for any reason other than the misconduct of such officer or servant, or of permitting any such officer or servant to retire on a gratuity or compassionate allowance shall, subject to the aforesaid provisions, be exercised by the Corporation.

Any officer or servant aggrieved by any decision of the

General Manager in the exercise of his powers under this section may appeal to the Corporation.

Standing orders governing conditions

the terms and conditions of service, including loans and allowances and conduct and discipline, of officers of the

Corporation;

the pensions, gratuities, provident fund or other superannuation benefits, of officers of the Corporation; and

housing accommodation for officers of the

Corporation.

Acting appointment

obtains a loan or guarantee from the Corporation under this Ordinance by means of any false representation;

wilfully applies any loan made to him by the

Corporation, or made to him by any financial institution or other financial source in pursuance of a guarantee given by the

Corporation or the Government, to any purpose other than the purpose for which the loan was made; or

having obtained a loan from the Corporation, or from a financial institution or other financial source in pursuance of a guarantee given by the Corporation, or the Government, wilfully destroys any security given in relation to any such loan,

[Am. Ord. No. 1/79; Am. Cap. A41.]

shall be guilty of an offence: Penalty, imprisonment for one year and a fine of two thousand ringgit.

False statements

of the existence of any vacancy in the membership of, or any defect in the constitution of, the Corporation;

of the contravention by a member of the Corporation of section 10; or

of any omission, defect or irregularity not affecting the merits of the case.

Protection of persons acting under this Ordinance

salaries, fees and allowances for members of the

Corporation;

fees payable to the Corporation; and

generally for the exercise of its powers and duties under this Ordinance.

[Am. Ord. No. 19/71.]

Exemption of the Corporation from income tax