Ex-Felda GM held over KL project, land deal

PETALING JAYA (Sept 7): A former Felda general manager has been remanded for five days, from Sept 7 to Sept 11, to assist the Malaysian Anti-Corruption Commission’s investigation into alleged abuse of power involving the appointment of a developer for a Kuala Lumpur project and the sale of land owned by the statutory body.

The former Felda official, who holds the title Datuk and in his late 60s, was among two men arrested at about 4pm on Sunday after appearing at MACC headquarters in Putrajaya to have their statements recorded.

The investigation comes as the Malaysian Anti-Corruption Commission (MACC) separately examines a series of Felda and Felda Investment Corporation Sdn Bhd (FIC) transactions under Ops Fella, including alleged misappropriation involving the Kuala Lumpur Vertical City (KLVC) development on Felda land in Jalan Semarak.

MACC has not publicly stated that the arrests are linked specifically to the KLVC transaction.

The two are being investigated over alleged misappropriation, abuse of power and corruption involving the appointment of a company for a project and the sale of land belonging to the statutory body.

Citing a source, Bernama reported that the two are suspected of involvement in the sale of the land to a company linked to the developer, allegedly without the knowledge of the statutory body’s board of directors and its subsidiary.

MACC chief commissioner Datuk Seri Abd Halim Aman confirmed the arrests and said the case is being investigated under Section 16 of the MACC Act 2009.

KLVC among seven investigation papers

Separately, MACC said last week that seven investigation papers involving Felda and FIC are being examined under Ops Fella, which focuses on investment transactions and asset acquisitions undertaken by the management of both entities from 2010 to 2020.

Six new investigation papers were opened on Aug 24, while the seventh — involving the Park City Grand Plaza property — is an older investigation paper that remains active and is undergoing the Mutual Legal Assistance process.

The six new matters involve the investment in Tataran Aras Sdn Bhd in Limbang, Sarawak; the acquisition of Grand Borneo Hotel Sdn Bhd in Sabah; the purchase of Grand Plaza Service Apartments in London; the establishment of Felda Wellness Corporation Sdn Bhd; the acquisition of Felda House and Grand Felda House; and alleged misappropriation involving the KLVC development.

MACC said 12 people had been called to give statements, including three FIC directors, an FIC company secretary, two FIC legal personnel, a valuer, three lawyers, an officer from the Kuala Lumpur Land and Mines Office and an officer from the Valuation and Property Services Department.

Jalan Semarak and KLVC

KLVC dates back to June 2, 2014, when FIC entered into a development agreement with Synergy Promenade Sdn Bhd (SPSB), appointing the company as master developer for a proposed mixed development on 24 Felda-owned parcels in Jalan Semarak, now Jalan Sultan Yahya Petra.

Court reporting on subsequent litigation put the 24 parcels at about 20.66 acres in total.

The project later became controversial after titles to 16 parcels measuring about 16.06 acres were transferred to SPSB and Synergy Promenade KLVC Sdn Bhd.

The government told Parliament in 2018 that then Felda chairman Tan Sri Mohd Isa Abdul Samad had signed a power of attorney on June 3, 2014, which was subsequently used in registering the transfers.

Felda said in 2017 that it had discovered the transfers and subsequently initiated investigations and lodged police reports.

The land titles were returned to Felda at no cost in January 2018.

Earlier MACC probe found no graft

MACC had previously investigated the Jalan Semarak land transfers and said in December 2017 that it had found no elements of corruption or abuse of power.

The commission said its investigation instead pointed to weaknesses in management and breach of trust and referred the matter to police for further action.

MACC said at the time that it would act if subsequent investigations uncovered elements of corruption or abuse of power.

The earlier finding is significant in the context of Ops Fella, which MACC said followed new information received in August.

A subsequent forensic examination of the KLVC transaction raised separate concerns over procedures and the safeguarding of Felda’s interests.

Multibillion-ringgit redevelopment

Synergy Promenade said in 2018 that under the development agreement, Felda was entitled to receive at least RM500 million or 10% of KLVC’s gross development value (GDV), whichever was higher.

The developer said the project initially secured a plot ratio of 1:7 before an appeal resulted in an increase to 1:10.

Synergy Promenade estimated at the time that the higher plot ratio would lift KLVC’s GDV to about RM8.3 billion and Felda’s potential entitlement under the agreement to about RM830 million.

Those figures represented the developer’s account of the proposed project’s economics at the time.

The development agreement subsequently became the subject of extensive litigation.

Synergy Promenade sued Felda and FIC over the project, while Felda and FIC separately brought a RM2 billion suit involving former Felda officials, Synergy Promenade, Synergy Promenade KLVC and other parties.

The proceedings concerned, among other matters, the development agreement, the Jalan Semarak land and the parties’ respective rights and obligations.

KLVC is now among the Felda and FIC transactions being examined under Ops Fella.

However, MACC has yet to publicly state that the two men arrested on Sunday are being investigated specifically over the KLVC or Synergy Promenade transaction.

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