MRB chairman: Najib, explain land deal that cost rubber board RM780 million

PETALING JAYA (Jan 14): The former prime minister had been asked to explain why the Malaysian Rubber Board (MRB) had sold a prized plot to Finance Ministry special purpose vehicle, Aset Tanah Negara Bhd (ATNB) instead of directly to the ultimate buyer, by MRB chairman Sankara Nair.

The Malaysian Insight reports that Sankara says that the motivation for the sale remains unclear, as MRB was not in need of funds at the time, and had no other reason. Buyer ATNB turned a profit of RM780 million by selling said land to the Employees Provident Fund (EPF) subsidiary Kwasa Land Sdn Bhd for RM2.28 billion. The price that ATNB had acquired the land for, from MRB was RM1.5 billion.

The deal had been sealed in 2011, during Najib's run as prime minister and finance minister.

"What was his motive to have structured this deal where MRB sells at a loss to Aset Tanah?

“Why not sell directly to EPF? 

“What was the purpose of making such a windfall and in the process create an unjust profit to Aset Tanah?,” he was cited as asking in a press statement.

"It is evident that there were no established Federal Government treasury instructions that mandate all sale of government real estate assets are to be sold through Aset Tanah, at a loss, so as to allow Aset Tanah to realise an obscene and unjustified gain and for what purpose?”

Previously The Edge Financial Daily reported that Sankara and Primary Industries Minister Teresa Kok said the MRB sold 2,800 acres (1,133ha) of land in Sungai Buloh to ATNB, a special purpose vehicle of the finance ministry, for RM1.5 billion in 2010, and that ATNB subsequently sold 2,330 acres of the land to EPF-owned Kwasa Land Sdn Bhd for RM2.28 billion. 

The EPF denied knowledge of the arrangements between the MRB and ATNB when purchasing the parcel from ATNB.

Najib, responded in a Facebook post, saying the EPF had raked in a big profit after buying the land at RM2.28 billion, as it will generate properties worth at least RM50 billion in gross development value. 

Najib also said he had previously pointed out ATNB is fully owned by the finance ministry. “There is not even one crony visible in the land transaction process except the EPF cronies, comprising EPF contributors,” he said.

The Malaysian Insight reports that Najib has not responded to questioned about the RM780 million profit that ATNB made, nor the use that the profits were channelled to.

Bernard Dompok (Teresa Kok's predecessor) has reportedly said that the sale was conducted on instructions from the government. 

Sankara was quoted as saying that Najib "designed the deal in such a roundabout and stealthy fashion”, which raised questions on Najib's handling of other deals as well.