News: Firm Sues Ex-FELDA Boss for Defamation Over RM270 Land Transfer

Jun 5, 2018

Synergy Promenade, the master developer of the Kuala Lumpur Vertical City (KLVC), has sued the former chairman of the Federal Land Development Authority (FELDA), reported The Edge.

In particular, the company is seeking RM100 million in damages due to loss of potential projects due to allegedly defamatory statements made by former FELDA boss Tan Sri Shahrir Abdul Samad between December 2017 and March 2018 regarding the transfer of 16 land parcels from FELDA to Synergy Promenade.

The firm also wants the court to prevent Shahrir from making further libellous statements and is asking for an apology from the former FELDA chairman.

“This is a defamation and malicious falsehood case against Shahrir because there were certain misrepresentation of facts he made in public in the recovery of the land which tarnished the reputation of the company in the business world, said the plaintiff’s lawyer Reza Rahim.

“The construction and development company lost out on several projects due the misrepresentation of facts,” he added.

In December 2017, it was reported that FELDA was at risk of losing millions, as the ownership of 16 land parcels in Jalan Semarak collectively valued at about RM270 million had been transferred to Synergy Promenade. The transaction was said to have occurred in 2014 or 2015 due to a power of attorney granted to the developer undertaking the project for the government agency.

Following an audit of the anomalous deal that found out that there was negligence in guarding FELDA’s interests and non-compliance with procurement procedures, the Prime Minister’s Department during the term of former PM Najib Razak instructed the agency to take disciplinary and/or legal action against those who have been negligent in performing their duties, misrepresenting and not safeguarding the interests of FELDA.

Nevertheless, Synergy Promenade signed a memorandum of understanding to return all 16 land parcels to FELDA on 15 January 2018 at no cost to the government.

The 16 land parcels are intended for the KLVC project, which will consist of seven blocks. These include FELDA’s 59-storey KLVC Tower1A, which comes with a two-level office podium, a rooftop garden and a helipad, which are being built by Synergy Promenade.

The development is expected to continue as approvals have already been secured but FELDA pans to negotiate with Synergy Promenade to get better terms.


Image sourced from Malaysia Dream News

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