KUALA LUMPUR: An opposition MP is questioning City Hall’s decision to sell a piece of prime land below market price for a high-density housing project in Taman Desa.
Seputeh MP Teresa Kok said the Auditor-General’s Report 2016 had revealed that City Hall had sold 3ha of land to Garuda Searah Sdn Bhd, a developer for Residensi Desa Satumas, for RM24.07 million.
“If the project cost is RM24.07 million, it shows City Hall sold each square foot for RM74.
“But the land value of each square foot of land in Taman Desa is RM400,” she said at a press conference in front of the Malaysian Anti Corruption Commission (MACC) office at Jalan Cochrane here. PKR communications director Fahmi Fadzil was also present.
Earlier, she had accompanied Taman Desa resident Edmund Teoh Kheng Yaik to lodge a complaint against the 3,002-unit Rumahwip housing project.
Rumahwip is a federal project to offer affordable homes in the Federal Territories.
Kok said Teoh had raised several issues involving the project. Other than City Hall selling the land below price to the developer, Kok said, the A-G’s report stated that the project had been done through limited tender.
The AG’s report had also stated that there was no proof an evaluation committee had been set up to evaluate the project.
The AG’s report further stated that the developer’s company was set up in March 11, 2015, and that the A-G was unsure if the developer was capable of developing the project as it was registered with the Companies Commission of Malaysia as an export and import company.
Meanwhile, City Hall mayor Mohd Amin Nordin Abd Aziz told FMT that the project was given through a bidding process. “This is based on the highest bidder with the best offer, including the units of Rumawip under a subsidised price.”
The mayor said the developer had to bear the high cost of construction against the control price of construction materials. He added, the developer would also bear the total cost of the project until the units were sold in three to four years.
Asked if the developer had any experience in building housing projects, Mohd Amin said the developer was aligned to a few companies which were top performers in terms of completing a construction project.
“They have built about 15,000 Rumawip within a few years. Some of the projects were ready ahead of time by seven to nine months. This compares to a few pieces of land sold to developers but where, until now, no development has taken place,” he added.
He said Federal Territories Minister Tengku Adnan Tengku Mansor would also be responding to the A-G’s report.