LAND joint venture activities by three state agencies with private companies in Malacca were found to be not satisfactory because projects were completed late, causing delays in returns or compensation due to them, according to the Auditor-General’s Report 2020 Series 1.

Auditor-General Nik Azman Nik Abdul Majid, in his report, said the audit was an assessment of all land owned by Perbadanan Kemajuan Negeri Melaka (PKNM), Yayasan Melaka (YM) and Perbadanan Kemajuan Tanah Adat Melaka (Pertam), the agencies that manage real estate development in Malacca directly and had greater land ownership than 11 other agencies in the state.

“There are weaknesses in land management by three agencies in Malacca: land that is still empty/undeveloped related to PKNM, YM and Pertam compared to the total land lots owned respectively which are 156 (64.5%), 42 (33.6%) and two (16.7%).

PKNM’s vacant lands in Sungai Baru, Sungai Baru Tengah, Sungai Baru Ilir and Linggi with an expenditure of RM58.5 million have yet to bring any returns.

“Arrears in the agencies revenues until December 31, 2020; Pertam has yet to receive land sales revenue at lot PT8534 amounting to RM21 million, YM has arrears of rental revenue until 2020 amounting to RM1.16 million involving nine tenants and arrears of land lease revenue for three lessees amounting to RM120,678.

YM also has arrears of land sales revenue amounting to 570,000,” said the report.

The report also stated that PKNM has land rental revenue arrears until 2020 amounting to RM42,449 involving seven tenants and land lease revenue arrears amounting to RM16,500 for one lessee; PKNM was late in renewing the land lease agreement involving seven tenants with delays ranging from 13 days to 12 months and 23 days.

In addition, YM has leased four land lots to a club and the club has appointed a third party to rent them out and set a double rental rate compared to the rent paid to YM, even though from YM has reduced land sales totalling RM2.33 million due to price reductions and social commitments related to the occupation of 21 Malay residents.

The report also mentioned that the implementation of a project as a joint venture between YM and Pertam with a private company was not satisfactory because the project could not be completed according to the period set in the agreement and the situation caused the agency to receive the returns or compensation stipulated late.

According to the report, in order to improve the agencies’ land management and ensure implementation met the set objectives, it was recommended that the parties involved take improvement actions such as identifying vacant land that have the potential to be developed or sold to give the best returns.

“The agencies need to work together with the state government to realise the desire of rapid land development for the welfare of the people and need to review the procedures for joint venture activities with private companies so that development objectives can be planned well and give the best returns,” it added. – Bernama, July 25, 2022.