FT Ministry secures RM149m additional proceeds after renegotiations on 16 land deals


Negotiations on seven land deals have hit a snag as related stakeholders and purchasers failed to resolve their differences with the authorities, largely over valuations.

Federal Territories (FT) Minister Khalid Abdul Samad (picture) said 16 land transactions from 23 contentious deals have been successfully renegotiated by the government and Kuala Lumpur City Hall (DBKL), securing an additional RM149 million in proceeds.

He said the proceeds will be used to subsidise the cost of the People’s Housing Project.

“Besides the RM149 million, DBKL also secured RM6 million worth of corporate social responsibility commitment from the companies involved,” he said in Kuala Lumpur yesterday.

He said the final figure is expected to be higher as three deals will undergo re-evaluation by the Valuation and Property Services Department.

“The companies have agreed to the transactions, but the deals will have to undergo a re-evaluation before we proceed,” he said.

However, Khalid said owners of three land deals had vehemently rejected any renegotiation — including an offer by the task force to buy back the land.

“Two transactions in Seputeh and one in Kepong involved two contractors who refused to negotiate with us. They wish to bring it to the court,” he said.

Khalid claimed the agreement related to the deals signed with the previous government is unfair.

He said the buyers purchased the land for RM40 million, although the land is valued at RM120 million.

He also said a deal involving a parcel of land in Cheras would require additional discussion between lawyers.

Meanwhile, Khalid said all the findings gathered by the task force in relation to the controversial land deals will be forwarded to the Malaysian Anti-Corruption Commission (MACC).

“While our task force negotiates and investigates the commercial aspect, we will still forward all the related documents to the MACC,” he said, adding that it would be for the anti-corruption agency to decide whether there are elements of corruption in relation to the 97 land deals.

Khalid said even transactions that were approved would be included in the submission to the MACC.

The land had been allegedly sold at below market prices to friendly parties of the previous government.

Negotiations over the 23 land deals were part of the investigation into 97 questionable deals involving a total of 273.27ha of land valued at RM5.63 billion.

These deals were inked by DBKL and the previous government.

Moreover, 10 of the 97 deals were cancelled as they did not have a proper title transfer document.