Rafizi: PM must scrap RM687m Felcra project

Prime Minister Najib Abdul Razak must scrap the RM687 million Menara Felcra project, said Pandan MP Rafizi Ramli.

"I call upon the prime minister to cancel the proposal and put a stop to the tendency of federal agencies to dabble into realty developments.

"I am totally against Felcra taking over as a developer and injecting millions of public money into the proposed project," he told Malaysiakini.

Felcra Bhd originally was not supposed to pay a single sen for the mixed development, with all costs to be borne by developer WZR group.

WZR would be making profits from leasing office and retail space, as well as selling apartments in the project.

Those familiar with the matter, however, told Malaysiakini that WZR was unable to bankroll the development, and passed the burden of financing to Felcra.

Rafizi said the government did not have the money to waste on another real estate project, and neither was there a need for a new mall.

He also said Felcra did not have the expertise to carry out the project.

"The fact that the developer, who presumably proposed the idea in the first place, did not manage to get the required capital to finance the mixed development is a sign that the project is not bankable," he added.

Rafizi also rubbished the notion that government agencies such as Felcra should generate their own income by getting involved in projects outside of their scope.

"This argument is supremely flawed because the federal government is meant to allocate enough funds for these agencies to function.

"If the allocation is not enough, it can only mean that the federal government does not have enough money for the agencies to dabble into activities they are not meant to get involved."- Mkini