Malaysia’s Federal Land Development Authority (FELDA) has recovered all 16 land parcels in Jalan Semarak collectively valued at over RM200 million that were transferred to developer Synergy Promenade Sdn Bhd (SPSB) via power of attorney in 2014.
On Monday (15 January), both parties inked a memorandum of understanding to give back ownership of the said plots to the government agency at no cost.
According to FELDA Chairman Tan Sri Shahrir Abdul Sam, he had filed a personal caveat for the 16 parcels last April. After reporting the anomalous ownership transfer to the police on 12 December, he submitted a registrar’s caveat for 15 of the lots on 26 December. This was followed by another one for the last land parcel on 28 December.
Although it has gotten back all land plots, the police will continue to investigate the questionable land ownership transfer, while the third-party audit is expected to be finished over the next 30 days.
“In tandem with the police investigation, a forensic audit is also underway to determine if there was any wrongdoing involved in the transfer,” he said.
Notably, the land parcels along Jalan Semarak are intended for the Kuala Lumpur Vertical City (KLVC). While construction work is ongoing as the government has already approved the project, FELDA plans to negotiate with the developer to get more favourable terms.
“I think the main concern for us is to amend the power of attorney given to the developer, into a more limited form that is revocable and must require written authorisation from FELDA if the land will be sold,” Shahrir added.
Under the existing contract with SPSB, the government agency will receive either 10 percent of KLVC’s gross development value (GDV) or RM500 million, whichever is higher.
Image sourced from The Star.
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
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