CITY HALL SHOCKER! 3 plots of land worth RM1.5bil sold for RM671 mil - who is responsible?

KUALA LUMPUR - City Hall has come under fire for its decision to sell three pieces of prime land through direct negotiation, with Cheras MP Tan Kok Wai claiming the transaction was carried out at the expense of taxpayers.

He said the three lots were purchased by three companies for RM671.6 million, when their market value would have amounted to RM1.5 billion according to independent valuers.

"Why were the three lots sold to private companies without tender and at a lower price?" he said at a press conference yesterday.

"This would only incur losses for the government and be a burden to the people."

Tan said the Kuala Lumpur Velodrome was located on one of the lots but was only sold for RM146.6 million; while the second lot, which had three of City Hall's department buildings was sold for RM380 million.

The third lot, he said, was 0.55ha located in the city centre but was only sold for RM145 million.

He said the government would not have suffered an estimated loss of RM900 million if the sale had been done through open tender.

"City Hall now has to fork out RM83 million for a new velodrome complex in Bandar Tun Razak.

"The buildings of the three departments are to be demolished and more will have to be spent to relocate them."

Tan said he had highlighted the issue in Parliament on Wednesday and Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor had said it was unnecessary to have an open tender for the sale.

"He (Tengku Adnan) had said the three lots had been valued by the Valuation and Property Services Department and denied the sale was scandalous.

"This is one enormous area of wastage that would only bring more burden to the people."

Tan said Kuala Lumpur DAP Youth would lodge a report with the Malaysian Anti-Corruption Commission next week. -Malay Mail