'RM2.7 billion to move Sg Besi airbase'

The cost to relocate the Royal Malaysian Air Force Sungai Besi airfield is RM1.1billion more than the sale of the “super prime” land to 1Malaysia Development Berhad (1MDB), said Petaling Jaya Utara MP Tony Pua.

The government gave up 495 acres of the land at RM74.20 per square foot (psf) at RM1.6 billion to 1MDB in June last year to make way for the Kuala Lumpur International Financial District (KLIFD), a decision which had the opposition up in arms, saying that prime property was worth at least three times more.

“What’s more shocking is that the relocation cost is at RM2.6 billion. This means the relocation cost costs RM1.1 billion more than the land itself.

“The transaction does not make sense at all. If the relocation is so expensive, why does the airbase have to be transferred? Why not just develop on the relocation land instead of Sungai Besi,” jibed Pua (right), during the debate on the Supplementary Supply Bill.

He added that the way funds were channelled into 1MDB for the venture was also “innovative”.

“Now the Air Force has to move from Sungai Besi to Sendayan, Subang, Kuantan, Butterworth and Gong Kedak,” he complained.

He further added that 1MDB did not have to fork out “one sen” in the Sungai Besi land transaction, while the government has to now come up with RM1.1 billion for the airbase relocation.

“This was a very slick move in injecting funds into 1MDB which never has enough,” he said.

Pua noted that 1MDB’s profits of RM544 million in 2011 and RM424 million in 2010, with the latter being “paper gains” which came about from the joint-venture with PetroSaudi International Ltd.

As for the profits recorded in 2011, it was due to the evaluation of 1MDB’s property which shot up to RM827 million.

He said that within a year, 1MDS’s property value had increased to RM1.02 billion, a 426 percent increase, and demanded an explanation whether the parcels of government land in Jalan Cochrane for the development of KLIFD were awarded to the company at a “much lower cost”.

“If it’s true, it is creative accounting of the highest order,” he exclaimed.

Deputy Finance Minister Donald Lim, in winding up the Bill, however, rejected Pua’s claims on the cost borne solely by the government for the relocation of the airbase.

Lim said that the relocation cost was managed by both parties and the valuation of the Sungai Besi airbase was conducted by a “third party”.

“YB Petaling Jaya Utara’s claims are not true and incorrect,” added Lim, wrapping up his reply without allowing clarifications from Pua.