KUALA LUMPUR: Questions have risen over how a private company was able to develop a six-storey office building and several durian kiosks on two plots of government land valued at RM20 million in Medan Imbi, Bukit Bintang in 2016, without paying “a single sen” in rent or premium.
The Federal Territories Ministry claimed that “hidden hands” were at play behind the project, which it suspects is linked to several figures from the previous administration.
The ministry is set to lodge a report with the Malaysian Anti-Corruption Commission (MACC) over the issue, which it believed involved corruption and abuse of power.
Federal Territories Minister Khalid Samad, divulging the matter in a press conference on Wednesday, said the land in question was Lot 568 owned by the Federal Territories Land and Mines Department, as well as Lot 716, owned by the Federal Territories Land Committee under the supervision of the Chief Secretary to the Government (managed by the Kuala Lumpur City Hall).
He said the two lots, measuring 0.14ha (16,000 sq ft) were originally a playground and open area filled with trees. It has now been replaced with an office building and durian kiosks.
“The two lots were developed by the same company. The question now is, how did they (the company) manage to develop government land?” he said, noting that the land was neither paid for nor leased to the company.
Khalid said the ministry’s integrity unit, following an internal investigation on the case, established that corruption and abuse of power had been taking place since March 2015.
Khalid described the existence of the office building as “miracle as it was built on someone else’s land.“
“They were so brazen to the extent they did this on government land. They have (also) not paid one sen in land premium or rent and are instead collecting rent,” he said.
He said the company had previously applied to rent the lots but did not obtain approval. He said DBKL had also previously sought to build durian kiosks on the plots in 2016, but the application was rejected by the land owner, the Federal Territories Land and Mines Department.
“However our checks showed that the development order was given later that same year, with a note to amend the number of floors on the building.”
He said since the building and kiosks’ completion in Feb 2018, the company had been collecting rent from tenants with no revenue going to DBKL.
The company, he said, has been instructed to vacate the lots before Jan 10. He said the ministry will await the company’s response before taking further action.
Khalid said the company has a way out, by applying to buy the lots from the rightful owners based on the market price. The company will also be subject to premiums and fines.
“The company has been given until the end of this month to respond. If there is no feedback, it will be assumed that they are not interested and further action will be taken,” he said.
He said the ministry will be a lodging a report with the MACC soon.
“We will urge for all those who were involved to be investigated as this is an obvious sign that there was abuse of power in City Hall and the ministry during the time.”