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Felda could lose RM200m Jalan Semarak land following 'dubious deal'

KUALA LUMPUR: Felda is at grave risk of losing ownership of a strategic piece of land worth RM200 million in Jalan Semarak, Kuala Lumpur, following what has been described as a ‘dubious deal’ in 2015.

The plot of land, which has been earmarked for the Kuala Lumpur Vertical City (KLVC) development project, will feature seven towers, including Felda’s iconic tower, to be known as KLVC Tower1A.

Berita Harian, in an exclusive report today, said its search on Kuala Lumpur City Hall’s (DBKL) web portal showed that KLVC Tower 1A has been approved for construction, alongside a 68-floor office building.

The office complex will feature 59 floors of office space, a two-floor office podium including parking lots, a six-floor car park, a two-storey underground car park, a rooftop garden, as well as a helipad.

Sources told Berita Harian that ownership transfer of the land took place when Felda Investment Corporation Sdn Bhd (FIC) appointed a local company as its main developer on June 3, 2014.

The company, the source said, was granted full power of attorney to develop the land.

Tan Sri Mohd Isa Abdul Samad was Felda chairman from 2011 until January 2017; Felda Global Ventures Holdings Bhd (FGV) chairman from January 1, 2011 until June 19; and FIC chairman from July 2013 until 2017.

According to the source, all decisions pertaining to the appointment of the company were believed to have been made by FIC, but this was only informed to the Felda Board of Directors three months later, on September 2, 2014, for retrospective approval.

“From a management point of view, it is quite confusing because the Felda Board of Directors does not know who made the decision, whether it was FIC or Felda because at the time, that same person sat in FIC and Felda.

“Felda had issued a letter of attorney to the company to develop the area. However, it was later discovered that ownership of the land had been transferred to the company in December 2015.”

Berita Harian’s search at the Kuala Lumpur Land Mines Office also found that ownership of a plot of land, measuring 16 hectares, which was the site of Felda’s former headquarters, Anjung Felda and Wisma Felda, had been transferred to another company on July 21, 2016.

This company is believed to have links with the project’s main developer.

It is understood that until today, Felda has neither made any announcements on the land ownership transfer nor on the transactions between Felda and the new land owners.

Berita Harian visited the main developer’s office to seek clarification on the matter but one of the company’s directors refused to comment.

According to news reports on May 14, 2014, the area was initially earmarked for a mixed commercial and residential development project with a gross development value of more than RM500 million, to be undertaken by FIC’s subsidiary ENCORP Bhd.

However, on Nov 6, 2014, DBKL received an application from KLVC’s main developer, and not ENCORP, to conduct the project planning in the same area.

Checks with the Companies Commission of Malaysia also found that KLVC’s main contractor is a new company that was established only in January this year.

Information gleaned from the contractor’s website showed that the overall value of the entire KLVC Tower1A project stood at RM107 million, with construction slated to begin in April this year and scheduled for completion on Aug 17, 2019.

Read the original Berita Harian article here: https://www.bharian.com.my/berita/nasional/2017/12/366015/pindah-milik-t...

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