Mindef lost over RM500m in land swap deals

KUALA LUMPUR (Feb 20): The ministry of defence (Mindef) is set to file reports with the police and the Malaysian Anti-Corruption Commission (MACC) over the alleged leakage of government funds believed to exceed RM500 million under the ministry’s land swap deals involving development projects.

Defence Minister Mohamad Sabu said he had received a final report on the matter from the special committee to investigate procurement, governance and finance, chaired by Tan Sri Ambrin Buang.

The report was also tabled and accepted at the cabinet meeting on Feb 13.

He said the committee’s findings, tabled on Jan 28, revealed 16 land swap projects involving 1,286 hectares of Mindef’s land worth RM4.756 billion, and development costs of RM4.886 billion.

“The investigation committee also found the estimated loss or leakage of government funds during the implementation of the land swap projects was over RM500 million. The ministry was informed that a majority of the land swap projects were not carefully planned, and the complete due diligence over the selection of the developing firm was not implemented,” he said in a statement.

Mohamad added that there was also political interference in the selection of locations proposed for the land swap deals.

The situation had even led to some of the projects being dragged beyond the contract period, with some completed at sub-par quality.

“I will instruct my officers to lodge reports with the police, MACC and other relevant agencies to conduct further investigations and take further action as provided for by the law,” he said.