KUALA LUMPUR, May 12 — An opposition lawmaker today queried Lembaga Tabung Haji’s (LTH) decision to use the services of a private property valuer in its controversial land deal with 1Malaysia Development Berhad (1MDB), claiming that the quoted price was more than three times the actual price.

PAS’s Pokok Sena MP Datuk Mahfuz Omar claimed that the value of commercial land in the Tun Razak Exchange (TRX) area is between RM500 and RM700 psf for an undeveloped plot of land, while the price of land with an approved development order goes up to between RM1,200 and RM1,500 psf.

“The price paid by Tabung Haji reached RM2,700 per square foot. So, what is the basis for the evaluation used in determining the price?” he said in a statement.

Mahfuz, who chairs a new movement called Gerakan Selamatkan Tabung Haji, said it was strange that LTH decided to hire international valuer Jones Lang Wootton — as claimed by a blog called “The Benchmark” — to handle the deal when there are many local Muslims valuers qualified to do the job.

He also claimed that valuers have said that the value at which LTH bought the land “allegedly on a discount” was just an estimated price and not the actual value of the property.

Mahfuz questioned why the services of the Valuation and Property Services Department (JPPH) were not sought, especially since both 1MDB and LTH are government entities.

“Even if they are allowed to use private services, it is better for options to be weighed after comparing the valuation made by the government’s official valuer and private valuer.

“What’s more, a government department will surely come up with a valuation that is more in favour of a government entity so that public funds are not used freely by those involved,” Mahfuz said.

Last week, reports of LTH’s controversial land investment hit media headlines after it was revealed that it bought a plot of land in the TRX about a month back from 1MDB, which is currently saddled with a RM42 billion debt.

The Benchmark first raised speculation on the purchase when it published purported documents of the controversial transaction that critics now claim could be a bailout for 1MDB.

The expose sparked outrage among lawmakers from both sides of the political divide, including Umno leaders like Tan Sri Muhyiddin Yassin, Datuk Seri Hishammuddin Hussein and Khairy Jamaluddin, and fuelled concerns raised previously over 1MDB’s dealings.

It has since been reported that civil service pension fund Kumpulan Wang Amanah Pencen (KWAP) has agreed to buy a parcel of land and building that will be turned into its new headquarters at the TRX at a price which is 15 per cent cheaper than LTH’s purchase.