PKFZ: From RM 1.37 & RM2.98 psf jumped to RM 41.55 psf

The story on PKFZ is getting ‘hotter’ by the day thanks to the true spirit of investigative journalism of the Malaysiakini team. Please note that Pulau Lumut was the old name of Pulau Indah. And Pulau Lumu Development Cooperative Bhd was earlier referred as “Pulau Indah Malay Fishermen Cooperative”.We are still waiting patiently for Tun Ling Liong Sik, Datuk Seri Ting Chew Peh, Datuk Chan Kong Choy, Datuk Yaop Pian Hon, Datuk Chor Chee Heong, Datuk Tiong King Sing, Datuk Rahman Palil to enlighten Malaysian taxpayers on the issue of the questionable lRM1.81 billion land deal.

PKFZ land sale under scrutiny

Fauwaz Abdul Aziz and Sabrina Chan
Jun 14, 07 1:10pm
Malaysiakini
Facts are now emerging that the parcel of land sold to the Port Klang Authority (PKA) for the Port Klang Free Zone (PKFZ) for a hefty RM1.09 billion was originally bought for a much lower price.The land – sold by Kuala Dimensi Sdn Bhd (KDSB) to PKA in November 2002 – was purchased from a local cooperative at only eight percent of the selling price.

Pulau Lumut Development Cooperative Bhd (PLDCB) had sold half of the 405-hectare land on Pulau Indah to KDSB in the early 1990s for RM30 million, while the remaining half was sold after the 1997 financial crisis at RM65 million.

Revealing this information today, PLDCB secretary Ruslan Akhyar said the 1,400-member cooperative established in 1989 received the land from the Selangor government only “a few years” before it was approached by KDSB with the offer to buy the land.

This means the price of the land – originally farm land and mangrove swamps – went from RM1.37 per square foot (psf) when the first half was sold to RM2.98 psf when the remaining 202.5 hectares were bought over by KDSB.

KDSB would have received the windfall when PKA agreed in 2002 to buy the whole lot to PKA at RM25 psf.

Both Ruslan, who is also Rantau Panjang village chief, and Pulau Indah village chief Mohd Halil Selamat – who confirmed the figures – denied any knowledge pertaining to the transactions conducted subsequent to PLDCB’s disposal of the land.

‘This is business’

They also declined to comment on the tremendous difference between the prices at which the land was bought and sold by KDSB.

“That’s what they call business,” said Halil when contacted.

PLDCB chairperson Abdul Rahman Palil, who is a Selangor state exco member and Sementa state assembly person, declined to comment on the matter.

According to an August 2005 Singapore Business Times report, KPA had paid KDSB a ten percent downpayment of RM108.5 million. The rest will be paid over 10 years beginning this year in instalments of between RM130 million and RM179 million.

While the connection is murky, KDSB has been linked to property developer and investment firm Wijaya Baru Global Bhd’s (WBGB) and is described in WBGH’s 2006 annual report as an “associate company” from which it derived “contract revenue”. 

In September last year, WBGB was actually slapped with a “public reprimand” by Bursa Malaysia Securities Bhd for failing to make an announcement to the Exchange in relation to “the disposal of the Pulau Indah Land”.

WBGB had failed to send a circular to its shareholders pertaining to the transaction and obtaining the approval of its shareholders prior to the transaction being completed, said Bursa Malaysia Securities in a statement.

Bursa Securities said, however, that it has not found any of the WBGB directors to have caused or permitted the breach of the Bursa Securities Listing Requirements (LR) and only directed WBGH to “maintain appropriate standards of responsibility and accountability”.

Unanswered questions

DAP leader Ronnie Liu, who lodged a police report over PKA’s purchase of the land in 2004, said the information uncovered made it all the more pressing for the authority to investigate the matter.

“It shows there are some questions to be answered,” he said when contacted.

Beside selling the land on which PKFZ is situated, KDSB was also appointed to develop the zone into a regional export and transhipment hub for manufactured goods, modeled after the successful Jebel Ali Free Zone in Dubai.

Six months after its completion and about RM2.4 billion worth of input later, however, PKFZ resembles a ghost town, with only about a dozen tenants scattered about the site instead of the anticipated crush of clients.

Sticky situation for Chor?

Poser over mega ‘ghost town’

4 Responses to “PKFZ: From RM 1.37 & RM2.98 psf jumped to RM 41.55 psf”

  1. ronnieliutiankhiew Says:

    to put it simply, 1,000 acres of swampy land worth RM95 million (RM30 m + RM 65 m) changed hand and immediatelly appreciated value up to RM1.81 billion. And you tell me there’s nothing wrong with it and call it “that’s business”?

  2. V T Says:

    Well done Ronnie, thanks for your tireless efforts.

  3. KSTAN Says:

    So next time all of us put our money together and buy a few worthless acres of land and then sell it back to the government for a whopping 1000% profit margin. Ronnie, with profits like that why be a politician? We’ll all go buy a sea-front villa property on the Caribbean Islands and live out our lives comfortably. hahahaha ….

  4. ronnieliutiankhiew Says:

    Some figures for you to ponder…

    1 acre=43,650 sq ft
    1,000 acres=43,650,000 sq ft
    500 acres@ RM1.37=RM29,900,250
    500 acres@RM2.98=RM65,038,500
    Add up the two parcels = RM 94,938,750

    ok, 1,000 acres now sold for RM1.81 billion
    which means RM41.55 per sq ft;
    and also means 19 times the original cost

    in actual figure, it’s RM1.715 billion higher than the original cost

    so, who has pocketed the extra RM1.715 billion? Not me.

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