KUALA LUMPUR: Ninety-six administrative offices belonging to highway concessionaire companies in Peninsular Malaysia have not signed land lease agreements with the government despite being occupied for between one and 26 years.
The Auditor-General’s Report 3/2025 revealed that this delay has prevented the government from collecting lease rental revenue amounting to RM96,000.
The report, which covers the 2024 Federal Government Financial Statements, noted that the leasing process involves 27 concessionaire companies managing 33 highways.
The Ministry of Works and the Department of the Director General of Lands and Mines are responsible for overseeing the land lease process.
Out of 136 administrative offices built by concessionaire companies, 96 offices under 23 companies have yet to finalise lease agreements.
Six offices did not include any lease clause in their respective concession agreements.
A nominal lease rental rate of RM1,000 for the concession period was established through a 1997 memorandum and Cabinet approval.
The Malaysian Highway Authority’s records confirmed that lease agreements for the 96 offices remain unexecuted.
This situation has resulted in estimated government revenue losses of RM96,000 based on the nominal lease rate.
Delays stem from various factors including land ownership processes involving 25 applications to the Malaysian Highway Authority and the Ministry of Works.
Eight applications are still being processed at the Ministry of Works and Department of the Director General of Lands and Mines level.
Thirty-three offices have not received a Form 5A Notice from the District and Land Office.
Seventeen offices made Form 5A payments but their lease agreements have remained unfinished since 2004.
Six administrative offices under the Shah Alam Expressway lack a lease clause in their concession agreements.
This omission means no lease rental has been charged to the company.
Between 2005 and 2024, the Malaysian Highway Authority collected RM3.27 million in lease payments for 27 administrative offices across 10 highways.
These collections occurred before lease agreements were signed despite the agency having no legal authority to collect such payments.
The audit recommended that concessionaire companies submit applications and expedite the land ownership process.
It also urged hastening the preparation of a supplementary concession agreement for the Shah Alam Expressway to ensure lease rentals can be imposed. - Bernama
