HUMAN Resources Minister M. Kulasegaran has revealed that a RM323 million investment made by the Social Security Organisation (Socso) in a plot of undeveloped land, which is currently under review, has not been generating revenue. 

The Malaysian Insight had reported a high-ranking Socso official as saying that the land initially earmarked for infrastructure development was being reviewed by the ministry’s Integrity Unit.

In response to that report, Kulasegaran said while nothing untoward has been uncovered concerning the process, the issue at hand was that the land was not generating any revenue, as per the norm for investments made by such agencies. 

“The agreement was signed during the previous government administrarion. We found that the purchase  was not wrongly done. The only thing is (it is not generating) revenue now. Generally, for agencies, revenue should be flowing.”

However, Kulasegaran said not all was lost as the land, located in Kuala Lumpur’s commercial, shopping and entertainment hub called the Golden Triangle, can be sold for the same price it was purchased at to recoup any losses. 

“In any case, the agencies are doing their thing. Let them do it. Let the necessary due compliance be done.”

Socso said an its investment panel would decide whether to develop the land as per initial plans or to dispose of it. A fresh valuation is also being undertaken on the 0.755ha plot of land in Jalan Kia Peng, which had been the site of a German High Commission residence. 

Meanwhile, Kulasegaran said investments made by agencies under the ministry would only be reviewed if they are flagged by the auditor-general. 

He said the return of investment for Socso and the Human Resource Development Fund, another agency under the ministry’s purview, has been within permissible levels. – February 21, 2019.