KUALA LUMPUR — Jan. 4, 2018: An external audit firm has been appointed by the Prime Minister’s Department (JPM) to conduct a forensic audit on the KL Vertical City (KLVC) project being developed on land belonging to the Federal Land Development Authority (Felda) on Jalan Semara.
The firm will re-evaluate the relevant regulatory processes, including weaknesses in the internal administration as well as Felda’s supervision of Felda Investment Corporation Sdn. Bhd. (FIC).
“The audit firm’s investigation will also encompass the Federal Territory of Kuala Lumpur Land and Mines Office and Kuala Lumpur City Hall,” said Datuk Seri Najib Razak.in a statement today.
The media had reported last December 21 that Felda was at risk of losing ownership the land estimated to be worth RM200 million when it was believed to have been transferred through a dubious deal in 2015.
The transfer was believed to have occurred when FIC appointed a local company as the primary developer, after which it was given full power of attorney to develop the land. The project is being developed by Synergy Promenade Sdn. Bhd. (SPSB)
Najib said the firm’s investigation is expected to be completed within 30 days and a full report then will be submitted to the JPM.
The appointment of the firm was made following Najib’s directive to Felda dated December 11 to determine whether there was non-compliance with existing procedures or if there were elements of abuse of power and corruption.
“In the letter sent by the JPM to Felda chairman Tan Sri Shahrir Abdul Samad, I also directed Felda to lodge a police report against SPSB for criminal fraud and take legal action for civil fraud for the transfer of Felda property rights without knowledge and permission,” said Najib, adding that the directive was issued to safeguard the interests of Felda and its settlers as well as to ensure that the land remained with Felda.
Najib said the police had also conducted an investigation and a caveat had been placed on the land.
“As such, reports saying that the land has been lost are incorrect. The registrar’s caveat on the land will ensure that Felda’s interests are safeguarded.”
Also today, former Felda chairman Tan Sri Isa Samad was at the Bukit Aman federal Police headquarters to have his statement recorded over the land transfer.
Inspector-General of Police Tan Sri Mohamad Fuzi Harun said some other individuals connected to the case would also be called.
Isa was Felda chairman from 2011 to January 2017, Felda Global Ventures Holdings chairman from January 2011 to June 19, 2017, and FIC chairman since it was established on July 2, 2013, until last year. — Bernama