PRIOR to his ouster, Universiti Putra Malaysia board chairman Syed Razlan Syed Putra Jamalullail was investigating the Putra Medical City project, said two sources.

The university was liable for a RM60 million claim if the project was cancelled and Syed Razlan was attempting to prevent this.

According to sources, former vice-chancellor Mohd Fauzi Ramlan signed a deal with Freestyle Development Sdn Bhd in April 2014 to develop 14ha of UPM land in Serdang, Selangor.

Fauzi had been mandated by UPM’s board of directors to sign the agreement but that was not in the board minutes, the source added.

Despite this, the agreement is still valid. The project valued at more than RM1 billion would involve the construction of a hospital, hotel and commercial centre, with Freestyle funding everything.

In return, the company would receive a 30-year concession to lease back the land to UPM at 80 sen per square foot per year. 

“Whether Fauzi was mandated (by the UPM board) to sign or not, the agreement with Freestyle Development is valid. 

“If brought to court, it is likely that UPM will lose and the damages to be paid are not less than RM60 million,” the source told The Malaysian Insight.

UPM could also face bigger problems if Freestyle Development placed a caveat on the land to indicate its interest.

“The (14ha) is part of the UPM master lot title. The golf course and the student hospital that are already constructed will be implicated. The problem will only worsen.”

Last September, Fauzi was subjected to disciplinary action by the UPM board of directors’ disciplinary committee which is chaired by the secretary-general of the Education Ministry.

The disciplinary action included a reduction of his rank and salary.

Following this, Fauzi lodged a complaint with the board, the ministry’s IPTA (public universities) governance division and the Malaysian Anti-Corruption Commission (MACC) alleging mismanagement and corruption by UPM’s top management.

The IPTA governance division then instructed Syed Razlan to investigate the complaint in a letter dated April 20.

A second source said Syed Razlan had proposed that the Medical City project continue.

He said Syed Razlan wanted to avoid blame being heaped on the board of directors if UPM is forced to pay compensation as a result of cancelling the project.

“Syed Razlan asked the UPM management to meet with the education minister or finance minister to revoke the cancellation order,” the second source said.

“Internal investigations involving the top management included the registrar and legal adviser. That is why Syed Razlan had asked them to go on leave.

“The vice-chancellor was not notified because he did not want to be seen as interfering,” the source added.

Syed Razlan’s actions were criticised by three UPM associations – the Universiti Putra Malaysia General Staff Association (Senior), University Putra Malaysia Administrative Association (PPUPM) and Universiti Putra Malaysia Academic Officers Association (PPAUPM).

The groups said he had asked the registrar and legal adviser to go on leave without justification and said it had created a hostile atmosphere among university workers and undermined the university’s reputation.

Syed Razlan’s three-year contract from October last year was cut short by Education Minister Dr Maszlee Malik for no apparent reason on July 17.

He is to be replaced by former Universiti Malaya vice-chancellor Ghauth Jasmon effective August 17. – August 10, 2019.