PKR vice-president Rafizi Ramli today questioned if it is feasible for developer Synergy Promenade Sdn Bhd (SPSB) to pay back RM500 million to Felda for the Jalan Semarak land as the company had no known business dealings.

“How does Synergy Promenade Sdn Bhd pay up RM500 million to Felda when it has no other financial sources or dealings?” Rafizi said in a statement today.

Felda chairman Sharir Samad had previously said under an agreement with SPSB, the developer had to pay RM500 million or 10% from the gross development value, whichever is higher.

Rafizi also questioned if the developers would hand over the land back to Felda despite the strata ownership of the development.

Rafizi who is also Pandan MP, said it would be a profitable venture if Felda takes back the land from developers.

He also highlighted that instead of a private developer, Felda’s own developer Encorp Berhad was more suitable to develop the prime land.

“If at all Felda wants to develop this land for profit, why was (it) given to a private entity instead of Felda’s subsidiary Encorp, which is an experienced developer?” he said.

Shahrir yesterday said that Felda will get back all 17 land lots that were transferred to SPSB two years ago.

Shahrir also denied that the land had been sold to SPSB, which is developing the Kuala Lumpur Vertical City (KLVC) project on the land.

On Tuesday, Rafizi said that the land is “gone forever” as it was sold to Synergy Promenade when construction of KLVC commenced.

Rafizi said that since approval has been given for the construction of KLVC on the land, the owners are the developer and the buyers of the individual units that had been built on the land.

Rafizi said that only a portion of the land would be returned to Felda.

The plots of land, worth RM270 million, were transferred to a private company in a dubious transaction in 2015.

Following a flurry of police reports and government assurances of an investigation, SPSB said last week it would return ownership of the land to Felda at no cost.

Shahrir said that the KLVC project will continue but Felda will renegotiate the terms and conditions with the developer.

SPSB has not made any statement since the news was reported on December 21 last year. – January 25, 2018.