The Valuation and Property Services Department denied knowledge of its officials being allegedly involved in a scam to fix the price of shop lots purchased by a Malacca state agency at an inflated rate of RM4.05 million.

Its Deputy Director-General Lim Kim Hoe said the department also was not aware of claims that kickbacks amounting to 15 percent of the purchase - or RM607,500 - had gone to senior government officials.

"We are not aware of any wrongdoings or dishonest conduct by our officials," he told malaysiakini.

Lim was responding to the confession by ex-corporate advisor with a shopping complex in Malacca that the latter had received RM50,000 in kickbacks from the Malacca Development Board's (PKNM) purchase of three shop lots in Plaza Melaka Raya at an inflated price.

The corporate advisor, Adam Yong Abdullah (right), alleged that the purchase price was inflated to RM4.05 million, about double that of the actual value of the three units, in collusion with government valuers who examined the properties.

He claimed that the total amount of kickbacks was split between a top official of the Entrepreneurial Development and Cooperatives Ministry (KPUN), Malacca government officials and a broker who put the deal together.

Adam also said the negotiation on the purchase price - which was held at KPUN on May 23, 2002 - was 'fixed' by key individuals involved in the deal, including members from the Valuation Department.

Before the meeting, Adam was told by the senior ministry official that the government was willing to go as high as RM4 million for the three lots.

During the meeting, the senior official would tap the table lightly as the bargaining reached RM4.05 million - the signal that Adam should accept the deal on behalf of his company.

Adam claimed that the commission of 15 percent was paid to a few people involved in the deal, which include government officials, the valuers, the broker as well as himself.

ACA probe

Meanwhile, a senior official with the Valuations Department who declined to be identified, also said it had not been contacted by the Anti-Corruption Agency (ACA) over the allegation.

The official also said the Department welcomed any steps by the ACA to investigate or question any of its officers over the matter.

On the issue of the 15 percent procurement fee paid to the broker who secured the RM4.05 million deal, the official said this was significantly higher than the usual commission given to real estate or property agents.

"This is definitely high. The usual commission is currently about 2.75 - 3.0 percent of the property price," he added.

His statement is at odds with that of a Plaza Melaka Raya official who denied any impropriety either in the purchase of the shop lots or 15 percent fee for the broker's procurement services.

The ACA Malacca office had earlier confirmed that a report had been lodged in January 2005 and an investigation was still underway.

PKNM has refused to comment on the matter as the case is still under investigation by the ACA.