Probe DBKL for selling prime land below market price, MP tells MACC

Seputeh MP Teresa Kok has questioned why Kuala Lumpur City Hall (DBKL) sold its 7.5-acre prime land in Taman Desa at below the market price, for only RM24 million, when it could be sold at least five times higher.

The DAP parliamentarian raised the doubt today, basing it on Series 2 of the 2016 Auditor-General’s Report.

The report released on Nov 27 states that there was “no evidence to show land valuation had been conducted on the deal for the project Residensi Desa Sutamas, which led to the bidding price by Kuala Lumpur City Hall to fall below the market price at RM24.07 million”.

Kok (photo) said: “This means the land was sold at RM74 per square foot (psf), but the market price of Taman Desa has reached approximately RM400psf.”

She accompanied Edmund Teoh, a 31-year-old resident of Taman Desa, to lodge a report with the Malaysian Anti-Corruption Commission (MACC) today.

“DBKL sold the land to the private developer at far below the market rate. What can the residents of Taman Desa gain from it?

“We want Federal Territories Minister Tengku Adnan Tengku Mansor and DBKL to explain why the land was sold at such a cheap figure,” Kok said.

She said the audit report also showed that land valuation was not conducted and DBKL had not called for open tender for the land deal.

A thorough investigation needed

“MACC should carry out a thorough investigation, based on what is stated in the Auditor-General’s Report,” she said.

The auditor-general revealed that the developer of Residensi Desa Sutamas is a trading company that was established in March 2015, and had bid for the Taman Desa land 10 months later.

“The Audit Department cannot determine if the company was able to implement the project since its activity, as according to the Companies Commission of Malaysia, was to export and import various products,” the report states.

It adds: “There was no offer from DBKL to the bidder to join the limited tender (tender terhad). On the contrary, all the bidders had submitted their bids directly to DBKL in January 2016.”

While noting that DBKL prepared two valuation schedules, which shortlisted the details of the bidders, the auditor-general said there were differences in the schedules and Garuda Searah was listed in the second schedule.

Residensi Desa Satumas is a federal affordable housing project, dubbed Rumawip or Federal Territories Housing Scheme.

The developer will build seven blocks of flats, totalling 3,002 units, in 36 months on the carpark lots of Desa Waterpark, Desa Valley.

According to Teoh (photo), who has been living in Taman Desa for 30 years, the developer has started land clearing at the site.

Teoh said the density of the locality has increased to 1,200 per acre, as compared with only 450 per acre six years ago.

He raised concerns about how the new projects would impact the residents.

“We urge DBKL to restore its public hearing process, which it had cancelled for the Rumawip projects,” Teoh said.

The federal government has planned to build 80,000 units of Rumawip from 2014 to 2018.

Minister will reply, says mayor

Meanwhile, Kuala Lumpur Mayor Mhd Amin Nordin Abdul Aziz dismissed any possible misappropriation and corruption in the land deal process.

“The minister himself will reply the allegation to the auditor-general and MACC,” Amin said in a text message.

He also explained why land valuation was not needed in the process.

“It was a bidding process. It was not based on direct award and thus needing a valuation.

“This was based on highest bidder with the best offer, including building the 3,000 units of Rumawip at a subsidised price,” he said.

“The developer has to bear the high cost of construction against the control price. And, the developer bears all the costs, maybe for three or four years until the units are ready to be sold.

“Thus, the factor of Rumawip is the determining factor in the sale of the land, besides being the highest offer,” Amin added.

According to him, Garuda Searah is linked to few companies, including Sinerjuta Sdn Bhd, Era Ecoland Sdn Bhd and others that have experience in construction.

 

Artikel disiar pada December 6, 2017 - 2:57 pm oleh Susan Loo

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