THE Defence Ministry will lodge a report with the police and the Malaysian Anti-Corruption Commission after uncovering losses exceeding RM500 million from land swap deals involving armed forces land.

The fraud was discovered by the Special Investigations Committee (SIC) to look into procurement and administrative procedures of the government, chaired by former auditor-general Ambrin Buang.

Defence Minister Mohamad Sabu said the investigation committee found 16 land-swap projects involving 1,183ha of land owned by the ministry, at a value of RM4.756 billion and involving project costs of RM4.886 billion.

The committee had presented its findings to the ministry on January 28, and the cabinet discussed them at its meeting last Wednesday, Mohamad said in a statement today.

“The selection of developers for most of the land swap deals was carried out without comprehensive due diligence.

“It was found that there was political interference in the selection of land parcels to benefit certain political interests,” said Mohamad.

Mohamad said some of the contracts have lapsed while others were constructed poorly.

“As such, I have instructed my officer to lodge reports with the police and the Malaysian Anti-Corruption Commission to investigate the deals further.”

Mohamad’s statement did not indicate when the deals were made.

The minister pledged last year to investigate the matter, which was raised by former cabinet minister Rafidah Aziz that Armed Forces land nationwide had been swapped with a company.

Last year, former international trade and industry minister Rafidah Aziz said Najib Razak, who was defence minister in 2008, had recommended the privatisation of over 40,000ha of ministry or Armed Forces land to a company owned by three individuals, which was approved and implemented.

She said the proposal, presented to the government in late 2007, was approved and executed.

The Special Investigations Committee was formed last year after Pakatan Harapan won the general elections and took over the federal government. Ambrin was tasked to lead it to audit various ministries, beginning with the Defence Ministry. – February 19, 2019.