S'gor forms panel to probe dodgy land deal
Published: Nov 15, 2010 4:47 PM | Updated: Nov 16, 2010 12:31 AM
The Selangor state government will form an independent committe to look into the sale of prime land by state development body Kumpulan Darul Ehsan Berhad (KDEB) below market value.
The Selangor state assembly today approved the motion to form the investigation committee to probe a the sale of prime land by state development body Kumpulan Darul Ehsan Berhad (KDEB) below market value.
The land owned by KDEB through its subsidiary Kumpulan Hartanah Selangor Berhad (KHSB) was ceded over to developer Temasek Sehati Sdn Bhd through a development agreement signed in 2006 which assigns to Temasek Hati the power of attorney over the land.
The state owned KDEB caused controversy when it entered a joint-development agreement with developer Temasek Sehati Sdn Bhd to develop the nearly 10 acres of land in Dengkil, Sepang, receiving only RM4 million in return for the land situated in a strategic area.
According to the 2006 agreement, KDEB will then have to pay for the premium for the land, after which the total returns was only roughly RM37,000 for the entire deal.
This made the deal questionable and a potential loss to the company and its shareholders, something which is a cause for concern and prompted calls for an investigation.
"KHSB is a public listed company, our statement today is not only to provide information to the public, but also for the share holders," said Selangor Menteri Besar Khalid Ibrahim when debating the motion.
The motion was submitted by Hulu Kelang assemblyperson Saari Sungip on behalf of the state legislature's committe which oversees state owned company and their operations.
"This is very lopsided, KHSB will have to pay for this and that," said Saari when met after the state assembly sitting.
Allowance to sign cheques
Meanwhile, the state assembly also approved a motion urging state development arm PKNS to stop giving allowance to check signatories.
As Saari revealed in the motion which he also tabled, PKNS Infra Berhad paid a total of RM187,800 to its chairman and several other board members just to sign checks in 2008.
"This seems to be the standard practice, it is almost like it is their culture," he said when revealing that the same practice resurfaced in another PKNS subsidiaries, namely State Industrial Corporation, prompting him to push for the bill to forbid such practice.
Saari also said that the company also listed the cheque signatory allowance as 'travel allowance', which he said was strange, though did not say if he sees it as an attempt to hide the expense.
He added that this practice goes against newly instituted best practices for all state owned companies.
Saari also said all serving PKNS board members and its subsidiaries must return the allowance to their companies.
The land owned by KDEB through its subsidiary Kumpulan Hartanah Selangor Berhad (KHSB) was ceded over to developer Temasek Sehati Sdn Bhd through a development agreement signed in 2006 which assigns to Temasek Hati the power of attorney over the land.
The state owned KDEB caused controversy when it entered a joint-development agreement with developer Temasek Sehati Sdn Bhd to develop the nearly 10 acres of land in Dengkil, Sepang, receiving only RM4 million in return for the land situated in a strategic area.
According to the 2006 agreement, KDEB will then have to pay for the premium for the land, after which the total returns was only roughly RM37,000 for the entire deal.
This made the deal questionable and a potential loss to the company and its shareholders, something which is a cause for concern and prompted calls for an investigation.
"KHSB is a public listed company, our statement today is not only to provide information to the public, but also for the share holders," said Selangor Menteri Besar Khalid Ibrahim when debating the motion.
The motion was submitted by Hulu Kelang assemblyperson Saari Sungip on behalf of the state legislature's committe which oversees state owned company and their operations.
"This is very lopsided, KHSB will have to pay for this and that," said Saari when met after the state assembly sitting.
Allowance to sign cheques
Meanwhile, the state assembly also approved a motion urging state development arm PKNS to stop giving allowance to check signatories.
As Saari revealed in the motion which he also tabled, PKNS Infra Berhad paid a total of RM187,800 to its chairman and several other board members just to sign checks in 2008.
"This seems to be the standard practice, it is almost like it is their culture," he said when revealing that the same practice resurfaced in another PKNS subsidiaries, namely State Industrial Corporation, prompting him to push for the bill to forbid such practice.
Saari also said that the company also listed the cheque signatory allowance as 'travel allowance', which he said was strange, though did not say if he sees it as an attempt to hide the expense.
He added that this practice goes against newly instituted best practices for all state owned companies.
Saari also said all serving PKNS board members and its subsidiaries must return the allowance to their companies.
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