1MDB got prime land for a song, says DAP

Tony Pua dares Putrajaya to deny that it sold Sungai Besi land at a massive discount.

KUALA LUMPUR: DAP today demanded confirmation or denial from the Najib administration that it sold 495 acres of prime land to 1Malaysia Development Berhad (1MDB) at a “ridiculously low price”.

Speaking to reporters in Parliament, DAP publicity chief Tony Pua alleged that Putrajaya, without calling for tenders, sold the Sungai Besi land to 1MDB for RM74.20 per square foot, which he said was far below the market price.

He disclosed that said the DAP-led Penang government recently conducted an open tender for 101 acres of land and sold it for RM1.07 billion.

This means the land in Penang was sold at RM240 per square foot although it should be cheaper than land in Sungai Besi, which is part of the Federal Territory of Kuala Lumpur.

“At RM240 a square foot, the Sungai Besi land should be worth a whopping RM5.2 billion,” Pua said.

“Despite its high potential valuation, the government has chosen to transfer the land to 1MDB for only RM1.6 billion, or RM3.6 billion less.”

Land in Kuala Lumpur is said to be selling at RM500 per square foot.

Pua said the massive discount given to 1MDB was a major loss of revenue to the government.

He described the direct sale as an example of Prime Minister Najib Tun Razak’s breaking of his promise of transparency and value-for-money policies when he took office in April 2009.

1MDB, a Najib brainchild, is developing the land into what will be called Bandar Malaysia as part of the government’s programme to attract investors and strengthen Kuala Lumpur’s global competitiveness.

Pua is calling on the government to disclose in full the terms of agreement in all land sales to 1MDB and explain why it is giving the company preferential treatment.