KUALA LUMPUR — Nov. 27, 2017: The National Audit Department has asked KL City Hall (DBKL) to sell its land through auctions so as to get the best price for its Federal Territory Affordable Homes projects (Rumawip).
The Auditor-General’s Report 2016 Series 2 released today further recommends that the Federal Territories Ministry provide guidelines and draw up work procedures on the sale of land through auctions, the method for selecting developers, monitoring of developers in terms of eligible applicants and data management at its portal as a guide.
At the same time, the report wants DBKL to act against developers who fail to carry out their obligations, including fulfilling the terms of the agreement, by withdrawing the offer or blacklisting the developer.
These recommendations were made after the department found that DBKL had disposed off its land through outright sales to new developers or those who were dormant, had unstable capital standing and were inexperienced.
It also involved the sale of land to unauthorised parties which exposed DBKL to the risk of late delivery and failure in meeting the objectives of the project.
The report highlights that there was no evidence that the assessment of the land for the Desa Satumas Residency to developer Garuda Searah Sdn. Bhd. was based on the sale value before the price was set at RM493 million.
The audit also found that there was no proper documentation for the granting of 100 per cent exemption for the development charge for the Gurneymas Residency, as set in the Federal Territory of Kuala Lumpur (Planning) (Development Charge) Rules 2013.
Another anomaly was that the interest for late payment was not stated in the offer letter for the sale of a plot which tantamount to negligence by DBKL that caused it not to be able to collect late payment interest amounting to RM493,046. — Bernama