News: FELDA to Take Legal Action Over RM270m Land Transfer

Feb 13, 2018

 
The Prime Minister’s Department has commanded the Federal Land Development Authority (FELDA) to punish those involved in the anomalous transfer of land collectively worth RM270 million to developer Synergy Promenade Sdn Bhd (SPSB).

“FELDA has been instructed to take disciplinary and/or legal action against those named in the audit report who are found to have been negligent in performing their duties, misrepresenting and not safeguarding the interests of FELDA and FELDA Investment Corp (FIC),” said the department.

The Prime Minister’s Department took this move after the third party forensic audit it commissioned to investigate the transaction founded out that there was negligence in guarding FELDA’s interests and non-compliance with procurement procedures.

The independent audit firm submitted the final report to the department on 2 February. Thereafter, it was officially presented to Prime Minister Datuk Seri Najib Tun Razak for discussion on 5 February.

Aside from giving his blessing to the creation of a local enquiry committee to implement the auditor’s suggestions and recommendations, PM Najib has also agreed to the creation of a consultative council to review the contracts between FIC with SPSB and the latter’s unit that is undertaking the Kuala Lumpur Vertical City (KLVC) project on the said land parcels.

The KLVC development consist of seven buildings. These include FELDA’s 59-storey KLVC Tower1A, which comes with a two-level office podium, a rooftop garden and a helipad.

Previously, SPSB was able to take control of the 16 land parcels in Jalan Semarak with a combined worth of around RM270 million in 2014 or 2015 due to a power of attorney granted to the developer by FELDA. Then on 15 January 2018, SPSB signed a memorandum of understanding to return all land plots to FELDA for free.

Aside from the third party forensic audit, the Royal Malaysian Police had also investigated the land transfer. In fact, they interrogated a number of high ranking officials, including former FELDA Chairman Tan Sri Mohd Isa Samad, as the suspicious deal occurred during his term.

Meanwhile, FELDA’s current Chairman Tan Sri Shahrir Abdul Samad said they will promptly act on the order of the Prime Minister’s Department.

“The FELDA Board welcomes the directive for disciplinary and legal action to be taken against those who neglected their responsibility in safeguarding the interests of FELDA and FIC,” he added.
 

Image sourced from RSP Architects

 
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
 

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Shaiful Safar
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