THE price tag for cancelling the redevelopment of Taman Rimba Kiara may not be RM150 million if it is proven that the project was “tainted with illegality”, two prominent lawyers said.

Ambiga Srenevasan and Derek Fernandez became the latest critics of the Federal Territories Ministry’s decision to go ahead with the unpopular, Barisan Nasional-era project to build condominiums in one of Kuala Lumpur’s last green lungs.  

It was reported that anti-graft body Centre to Combat Corruption and Collusion (C4) had found irregularities and conflicts of interest in the project’s approval.

The Malaysian Anti-Corruption Commission (MACC) is also investigating the project, which was approved by former federal territories minister Tengku Adnan Tengku Mansor.  

In a joint statement today, Ambiga and Fernandez said contracts that are “tainted with illegality” can be cancelled and terminated without having to take into account its binding terms.    

“Where a contract is found to be tainted by illegality, the so called ‘binding contracts’ may be set aside, the development order revoked and the project terminated,” the statement said.

“It would then be arguable that any developer involved in such illegality is not entitled to any compensation for its termination on the grounds of public policy.”

Federal Territories Minister Khalid Samad had claimed that the Kuala Lumpur City Hall would have to fork out RM150 million if the project was not allowed to continue.

He had said the final decision whether to proceed with the project will be made by the Cabinet.

The project involves the construction of 350 units of affordable houses for Bukit Kiara longhouse residents, and eight blocks of 50-storey high-end condominiums.

Ambiga and Fernandez also argued that if it was proven that approvals were given illegally, compensation  due to the developers could be below RM150 million.

“The only compensation payable in the event of termination (subject to any allegations of illegality being proven) and where the land is undeveloped, is the actual expenditure incurred as stated in section 25(6) of the Federal Territory (Planning) Act 1982.

“This would involve the purchase price for the land, the land premium and other expenses, all of which must be supported by receipts or proof of payment for the alleged expenditure. This is unlikely to be anywhere near RM150 million, as mentioned.”

The two lawyers said the development order by the former federal territories minister does not accord with the 2013 Draft KL City Plan, in which Bukit Kiara was zoned as a park with no changes.

The gazetting of the 2018 KL City Plan is not legal as it violates the law and has included unilateral changes to the Bukit Kiara Park without displaying the same for public hearing, they added. – March 26, 2019.