PETALING JAYA: The defence ministry is finalising new terms for a land swap project involving the construction of an army camp in Paloh, Kluang, in Johor, which was mooted in 2016 but halted in 2018.
Defence minister Mohamad Hasan said the terms of the agreement would cover the review of the project’s costs and an evaluation of the land involved in the deal.
“The relevant agencies are holding negotiations and carrying out the due diligence process with the company involved.
“A Cabinet memorandum will then be prepared for the Cabinet to give the approval to sign the privatisation deal,” he said in a written parliamentary reply.
He was replying to Hishammuddin Hussein (BN-Sembrong), who asked Mohamad about the status of the camp’s construction. Hishammuddin, a former defence minister, said he was made to understand that the project was put on hold though it was 55% complete.
Mohamad said the company had started building seven of Paloh camp’s 35 components before the project was halted in May 2018 following the change in government.
He added that the terms of the agreement would be vetted based on Putrajaya’s governance, procurement and finance investigation committee’s recommendations.
A land swap is a method practised by the defence ministry to develop facilities through the exchange of government land with the private sector.
In November 2020, the Public Accounts Committee (PAC) initiated a probe on land swap deals involving a 38ha army camp in Kinrara, Selangor; the construction of an air force facility in Sendayan, Negeri Sembilan; and the construction of an army camp in Port Dickson, Negeri Sembilan.
The proposal to construct the Port Dickson army camp was replaced with the proposal to set up the Paloh camp in 2016.
In 2019, the defence ministry revealed that Putrajaya had lost more than RM500 million in land swap deals since 1997. - FMT
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