Govt lost half-a-billion ringgit through Mindef land swaps, audit finds

Govt lost half-a-billion ringgit through Mindef land swaps, audit finds

This was among the findings of an investigation into alleged misconduct and malpractices in the defence ministry.

The defence ministry will be filing reports with the police and MACC based on findings of an audit into malpractices in the ministry.
PETALING JAYA:
The final audit report into alleged malpractices in the defence ministry has found political interference and absence of due diligence in 16 projects involving government land, causing the government to lose some RM500 million.

“There were also completed projects with unsatisfactory building quality,” Defence Minister Mohamad Sabu said today.

The report, prepared by a committee headed by former auditor-general Ambrin Buang, was presented to the Cabinet last week.

He said his ministry will also be lodging reports with the police and the Malaysian Anti-Corruption Commission for further action.

Among others, the committee found there were 16 projects through land swapping of some 2,923 acres of Mindef land worth RM4.756 billion, with a total project cost of RM4.886 billion.

Before the 14th general election, it was alleged that over tens of thousands of hectares of army land had been transferred to a private company without going through open tender.

Mindef denied that the entire federal land utilised by the ministry had been transferred to a company owned by three individuals.

It added that each development project was implemented by a different company and had nothing to do with one another.

Mindef also said the development of the land adhered to proper procedures.

The swapping of ministry land, it added, was implemented after obtaining the approval of “end users” such as the army, the Royal Malaysian Navy and the Royal Malaysian Air Force.

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