Special task force investigating 97 shady business deals related to DBKL

KUALA LUMPUR: The Federal Territories Ministry today clarified that a special task force has been probing 97 dubious transactions involving Kuala Lumpur City Hall (DBKL) worth RM5.63 billion.
It was previously stated that the ministry was investigating 64 plots of land but the number has now increased, according to its minister Khalid Samad.
Khalid said the task force which comprised DBKL officers and ministry officials among others, had found that the dubious transactions amounted to 97 plots of land.
"Of the 97 plots of land covering 675.27 acres (273.27 ha), 43 were cleared for sale, 19 transactions had been cancelled due to discrepancies and a further five out of the 43 plots of land were sold at below market value.
"These five transactions were made for the Rumawip (Federal Territories Affordable Housing) project to replace squatter homes," he said at a news conference at the DBKL headquarters today.
"Previously it was 64 plots of land that were dubious transactions, I wish to correct my statements and say that it is 97 plots of land that are dubious transactions," he said.
He added that the findings of the task force had been handed to the Malaysian Anti-Corruption Commission (MACC), while DBKL will continue to scrutinise these deals further.
Out of the 19 deals cancelled, transaction deposits for 10 had been returned to developers while eight were being renegotiated and one had gone to court. An additional 15 transactions are in the midst of being recommended for suspension and renegotiation due to various discrepancies.
He said the ministry will conclude the renegotiations and land sale prices by Sept 30.
The remaining 20 transactions had already been issued land titles and the ownership had been transferred.
He said that out of the RM5.63 billion, DBKL had already recovered RM3.7 billion.
"We can't stop it now, it's out of our power to stop these transactions as they had already gone through. MACC will investigate this," he said.
Khalid said these land sales which were made under the previous government, specifically then FT minister Datuk Seri Tengku Adnan Tengku Mansor, had not adhered to standard operating procedures.
It was previously reported that some of the transactions involved Yayasan Wilayah Persekutuan chaired by Tengku Adnan.
These transactions included a 15.24-acre site next to UTC Pudu which was valued at about RM1.5 billion but was acquired or transferred to the KL mayor for RM700 million in October 2015; a 31.7-acre parcel in Kepong transacted for RM418.22 million in September 2015; and a 1.24-acre plot in the Golden Triangle in Jalan Raja Chulan, which was transferred to the KL mayor for RM101.05 million in April 2017.
However, Khalid said that the purpose of the task force was not to investigate corruption, but more so to come up with a win-win solution on the deals.
Meanwhile, Khalid said the next Kuala Lumpur mayor will be announced next week. He noted that the three shortlisted candidates will not be from within DBKL or politically linked.