Payments to convert bumiputera housing lots in Johor into non-bumiputera lots is a state policy meant to aid the bumiputera, explained Menteri Besar Khaled Nordin.
He said since 2013, developers are able to apply to convert bumiputera housing lots by making a 7.5 percent contribution - or half of the 15 percent bumiputera lot discount - to the state, with projects prior to 2013, eligible for lower payments.
"The contributions or collections acquired through payments to convert (lots) and release the bumiputera status are then channeled to a Bumiputera Housing Fund," Khaled said in a statement today.
He said the fund, which has amassed RM600 million since 2013, will then be used by the state for pro-bumiputera projects such as acquiring land for affordable housing, and building up bumiputera shop lots.
Khaled was responding to an alleged land and housing scandal in the state, which is being probed by the Malaysian Anti-Corruption Commission (MACC).
Last Friday, the son of Johor state executive councillor Abd Latif Bandi and a special officer were arrested for allegedly receiving kickbacks to convert bumiputera housing lots into non-bumiputera lots, which can be sold at higher prices.
Khaled denied that this was an issue of converting lots meant for low-cost and affordable homes, as the state does not allow this.
He also lauded Abd Latif's move to take leave pending the MACC probe, and said the state would fully cooperate with the graft busters.
The menteri besar also said the state government will strengthen its procedures and administration to plug up any abuse of power and leakages.
A total of seven suspects, including a lawyer and two other developers, have been arrested and 45 bank accounts containing over RM15 million have been frozen in connection with the case.
Last Friday, MACC also seized 21 luxury cars and five high-powered motorcycles in raids related to the case.- Mkini
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