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Felda gets Jalan Semarak land back
Published on: Tuesday, January 16, 2018

Kuala Lumpur: The Federal Land Development Authority (Felda) Monday confirmed it has regained the ownership of the land in Jalan Semarak here, from Synergy Promenade Sdn Bhd (SPSB), without incurring any cost, said its Chairman, Tan Sri Shahrir Samad.

Regaining the ownership of the 16 plots of land, which involved four sale and purchase transactions done in December 2015 and November 2016, was effected through a memorandum of understanding signed between Felda and SPSB at the Felda headquarters Monday.

"The developer has voluntarily agreed to return the land ownership to Felda without cost and has given all the land ownership documents to be re-registered in Felda's name," he said in a special interview with Bernama here.

With regards to the ongoing development of the Kuala Lumpur Vertical City (KLVC) project on the land, Shahrir said the project would continue as the developer had already received the development order before the transactions for the change in land ownership were done.

He said all matters relating to the KLVC project would depend on the development agreement which was signed between Felda's subsidiary, Felda Investment Corporation and SPSB in June 2014.

"We need to separate the land ownership issue and also the issue of the project development on the land because if anything happens to the developer, Felda's interest on the land is guaranteed and will not go with it (lost)," he said.

Shahrir explained that under the development agreement, the financial and development funding issue did not come under Felda's responsibility.

The development agreement also stated that Felda would get cash payment of at least RM500 million or 10 per cent of the total value of the project development, whichever is higher, he said.

Shahrir said Felda and SPSB would renegotiate to improve the implementation of the development agreement for the interest of all parties.

"Felda will also ensure that all processes and procedures in returning the land and other processes in the KLVC project will be according to corporate governance practices that are good and with integrity," he said.

On the police report made on Dec 12 last year under Section 420 and Section 471 of the Penal Code (Act 574), Shahrir stressed that Felda had decided not to withdraw the report.

"The police report is to investigate the alleged misconduct or fraud involving the ownership transfer that was done illegally, not on the project," he said.

The ongoing forensic audit would be continued to identify if there was misconduct in the said transaction, he added. – Bernama

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