FELDA has given its assurance that none of the officials found guilty in the dubious transfer of ownership of prime land in Jalan Semarak will be spared punitive action.

This includes the former chairman and Felda board members who were in charge when the deal went through between 2014 and 2015, said Felda chairman Shahrir Samad.  

Shahrir did not mention former Felda boss Mohd Isa Samad by name, but said a forensic audit had recommended that all of the agency’s officials, including its board members, be investigated for possible involvement in the deal.

Shahrir said Felda would take punitive action against officials shown to have been involved, even those who have since left the agency.

Isa has left but some of the agency’s board members who were at Felda when the deal took place are still at the agency.

“The scope of our action can range from termination to having their salaries cut. Civil action can be taken against those who have since left,” Shahrir said at Felda headquarters last night.

“The board’s investigating committee will look at just how much the Felda board and the FIC (Felda Investment Corporation) board were involved in the deal and the action that can be taken against them.

“The audit did not name names but said collectively, the Felda board and the FIC board at the time (the transaction occurred),” Shahrir said.

He said this meant meant all officials from the chairman of the board to those of lower rank who were found to be involved at the time the deal occurred.

“The Felda board includes the chairman,” Shahrir said to a question from a reporter.

Felda will also study whether legal action can be taken against Synergy Promenade Sdn Bhd (SPSB), the developer to which ownership of the land, worth about RM270 million, was transferred.

Following a forensic audit, Felda has set up a committee to look into into legal action against those found guilty of wrongdoing in the deal.
 
The audit had uncovered elements of abuse of power and fraud in the transactions to transfer ownership from Felda to SPSB.
 
SPSB is the developer appointed by Felda to build the Kuala Lumpur Vertical City Project (KLVC) on the land.
 
Shahrir filed a police report last month alleging fraud in the deal as the developer had misused its power of attorney to transfer ownership of the lots to itself.

He said it was standard practice for the landowner to retain ownership of the land while it was being developed. 

Police have said that Isa and a few other were under investigation for involvement of the deal.

Following an outcry over the revelations, Shahrir said last month that SPSB had willingly handed over documents that would allow Felda to reclaim ownership of the land.  

He said the KLVC project would proceed as planned but Felda would be renegotiating the terms of the agreement.

Felda’s critics have questioned why the agency continued to do business with SPSB given that the company was involved in the land transfer.

Shahrir said it was because the agency could not simply cancel the development agreement with KLVC. 

“What was important for me was (that we) normalise the relationship with the developer and (that we) get back our land.

“For now, we can’t just terminate the development agreement. That is dangerous. So will renegotiate the agreement.”

Shahrir was uncertain as to whether work had continued on the KLVC project, saying that would depend on the developer.  – February 9, 2018.