Felda sues Isa Samad, 20 others for ‘conspiracy to defraud’

PETALING JAYA: The Federal Land Development Authority (Felda) and its subsidiary filed suits against two former chairmen, Isa Samad and Shahrir Samad, as well as 18 others for conspiracy to defraud the government agency.

Also named in the suits, which seek an order to immediately cancel all ownership transfer instruments for a land on Jalan Semarak, is property development company Synergy Promenade Sdn Bhd (SPSB).

Felda and Felda Investment Corporation Sdn Bhd (FIC), as plaintiffs, filed the suits through law firm Lee Hishammuddin Allen & Gledhill.

In an affidavit, Felda and FIC, claimed that the KL Vertical City (KLVC) project was awarded to SPSB “on terms that were clearly unfavourable to Felda”.

Others named as defendants include former Felda director-general Faizoull Ahmad; former FIC CEO Mohd Zaid Abdul Jalil; SPSB directors Abd Rahman Soltan and Noraini Soltan; SPSB and Synergy Promenade KLVC Sdn Bhd (SPKLVC); former Felda director-general Hanapi Suhada; former Felda director-general Ab Ghani Mohd Ali; former Felda Land director Shahrizal Mohd Saleh; and the Kuala Lumpur Federal Territory Land and Mines director.

In its writ of summons and statement of claim, Felda sought an order to direct the Federal Territory Land and Mines director to cancel all instruments of the Semarak Felda land ownership transfer from the agency to SPSB and SPKLVC within 30 days of the issuance of the order.

They are also seeking a declaration that the FIC letter of award, Felda letter of award, development agreement, power of attorney, lease agreement, four lease purchase agreements (SPAs) and memorandum of understanding cannot be enforced, and are null and void.

In the suit, Felda and FIC demanded compensation from all defendants for the contravention of fiduciary duty borne against Felda, namely RM1.062 billion for the commercial value of the Semarak land which could be directly received from the sale of the land.

They also sought compensation in equity for commercial opportunity losses of RM562 million if Felda received an MGR (minimum guaranteed return) of RM500 million from the development agreement, as well as compensation in equity on all costs and expenditure incurred to demolish the structure built by SPSB and return the land to its original condition.

The plaintiffs also sought compensation of RM1.5 billion for the overall rental liability under the rental agreement if it is not set aside, compensation of RM2.062 billion and compensation for the commercial value of 17 land lots, which were purportedly sold under the four SPAs, and costs.