THE land value for four Defence Ministry projects is RM166.81 million lower than that of their contracts, said Mohamad Sabu.

“The special audit committee found that the value of the land is lower than that given by the Valuation and Property Services Department (JPPH),” the defence minister said when tabling a special audit report on the land swaps in the Dewan Negara today.

JPPH had valued a plot in Bukit Raja at RM315.5 million, while the contract value was only RM277 million. This resulted in a loss of RM38.5 million to the government.

The department valued land in Plentong, Johor, another plot in Bukit Raja and land at the Kinrara camp at RM57.3 million, RM94 million and RM619.7 million, respectively, while the contracts were valued at RM55.2 million, RM87.5 million and RM500 million each.

“This resulted in a total loss of RM166.81 million,” said Mohamad.

The executive summary of former auditor-general Ambrin Buang’s report is available on the ministry’s website.

Mohamad said the contracts did not protect Putrajaya’s interests as they allowed companies to transfer ownership of the plots in question as soon as the land bonds were given to the government.

“In this case, the land was transferred to the companies even though the projects had not been completed.”

Under the land-swap system, Putrajaya privatises government land in exchange for the construction of government facilities.

In 1997, the cabinet decided that land used for such purposes would be given only a 99-year lease instead of freehold. – May 9, 2019.