PM’s Dept wants Felda to take action over KLVC project

KUALA LUMPUR (Feb 8): Felda (Federal Land Development Authority) has been instructed by the Prime Minister’s Department to take disciplinary and legal action against those who have been negligent about the agency’s interests.

"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 FIC [Felda Investment Corp Sdn Bhd]," the department said in a statement, Bernama reported today.

The Prime Minister’s Department also said that the forensic audit report conducted on the Kuala Lumpur Vertical City (KLVC) project revealed there was non-compliance with procurement procedures and negligence in guarding Felda’s interests.

An audit firm appointed to conduct a forensic audit on the project had submitted a final report to the Prime Minister’s Department on Feb 2, the statement said.

The department tabled the report to Prime Minister Datuk Seri Najib Tun Razak on Feb 5, Bernama reported.

"The prime minister agreed that a consultative council be set up to review the agreement between FICSB with SPSB and Synergy Promenade Kuala Lumpur Vertical City Sdn Bhd (SPKLVCSB)," it said.

KLVC is being developed by Synergy Promenade Sdn Bhd (SPSB) on land belonging to Felda.

KLVC will comprise seven towers, including Felda’s KLVC Tower1A.

The tower will have 59 floors of offices, a two-floor office podium with parking lots, a six-floor car park, a two-storey underground car park, a rooftop garden and a helipad.

Najib also agreed to the creation of a domestic enquiry committee to take action on suggestions and recommendations in the audit report, said the department.

Members of the committee comprise Datuk Dr Yusof Ismail, from the Finance Ministry; Economic Planning Unit (EPU) Director-General Datuk Nik Azman Nik Abdul Majid; Felda General Manager Datuk Ab Ghani Mohd Ali; Deputy Secretary-General at the Prime Minister’s Department Datuk Zainal Abidin Abu Hassan and Public Private Partnership Unit (UKAS) Director-General Datuk Seri Ahmad Husni Hussain.

The audit began on Jan 4, covering all the process beginning with the proposal of the KLVC development, the project implementation until the Felda land title transfer.

It was reported in December last year that Felda was in danger of losing ownership of a piece of land worth RM270 million along Jalan Semarak, as a result of a “dubious deal” that took place about two years ago.

The land is supposed to be for the KLVC project.

A number of officers including former Felda chairman Tan Sri Mohd Isa Samad were questioned by the authorities about the land deal.

"Generally, the audit report has fulfilled the stipulated auditing objective and the government is satisfied with the report by the audit team,” Bernama reported the department as saying.

Meanwhile, Bernama also reported that Felda will promptly take action against those who were negligent in safeguarding its interests and of its investment wing, FIC.

Felda chairman Tan Sri Shahrir Abdul Samad said the agency would hold special meeting tonight to discuss the recommendations made by the audit team following the forensic audit on the KLVC project.

“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 FICSB," he told Bernama.