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KUALA LUMPUR (MALAYSIA) - A Malaysian-owned plantation firm whose director was jailed for causing smoke haze on Indonesia's Sumatra island has agreed to pay more than $US1 million (EUR 901,000) in compensation, an official said. "Following an agreement on April 23 with the company, PT Adei Plantation agreed to pay 1.1 million dollars in settlement money to the government," Nixon Silalahi, an environment ministry official,said today.
He said the Government would drop a civil lawsuit against the firm following the agreement. The money would be used to finance reforestation programs. Silalahi said the company was earlier taken to court on criminal charges of allowing fires to burn at its plantation in Riau province in 1999-2000, worsening the haze that blanketed the region during the dry season.
PT Adei's president, a Malaysian identified only as Goby, was originally sentenced to jail for two years. The Supreme Court cut the sentence to eight months plus a $US11,300 (EUR 10,200) fine, Silalahi said.
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