S’wak DAP: State to lose RM400mil in land deal

The Sarawak state government’s alleged alienation of 267.15 acres of land at Batu Kawah, Kuching, stands to benefit some political leaders and a crony company with “huge profits”.

However the state stands to lose some RM400 million, alleged Sarawak DAP chief Chong Chieng Jen.
“This money could be better used to build thousands of low-cost houses, infrastructure and other amenities,” he said at media conference today.
Chong said he believed there is an agreement signed between the state government and a private company sometime in March 2014 to alienate parcels of land at Jalan Batu Kawah described as lots 18, 5489, 5490, 5491, 2301, 2304 and 5279. totalling 267.15 acres.
He said the premium payable by the said company was RM115 million only, that is, RM430,469.77 per acre.

However he alleged the market value of the land in the vicinity was approximately RM2 million per acre.
The alienated land, said the MP for Bandar Kuching and state assemblyperson for Kota Sentosa, thus was worth RM534 million, resulting in the government being short-changed by RM400 million.
“Given the seriousness of the matter, I have today written to the state secretary to seek confirmation on the existence of such an agreement and, if so, the justification for the government to alienate state land to a private company at only 21 percent  of the market price of the land.
“Rumours are rife in the realty market that there are property brokers and agents going around asking for potential buyers for the said land.
“Such has been the practice of the state government to channel the state’s wealth to the few selected private individuals, the so-called cronies.
“A few years ago, prime land of 269 acres in BDC, Kuching, worth the then market value of RM400 million, was alienated to another crony company at the premium of RM80 million, 20 percent of the market value,” he claimed.
Chong urged the state secretary to clarify the Batu Kawah land deal, if it exists, to the public within 10 days from today.
He added if there was such agreement, the government could still neutralise its grossly unfair terms but if there was no such deal, was all the more this should be made clear for the benefit of the public.

on the Malaysiakini (22/09/2014)