.JPG "Malaysian Rubber Board chairman Sankara Nair speaks to reporters during a press conference at the Ministry of Primary Industries January 3, 2019. u00e2u20acu2022 Picture by Miera Zulyana")
KUALA LUMPUR, Jan 3 ― The previous Barisan Nasional (BN) administration had short-changed and forced the Malaysian Rubber Board (MRB) to sell 2,800 acres of its land for an undervalued price of RM1.5 billion in 2010, alleged Primary Industries Minister Teresa Kok.
In a press conference today, Kok said that in October 2010, the then Cabinet under former prime minister Datuk Seri Najib Razak had approved and instructed the sale of the land located in Sungai Buloh known as Lot 481 to Aset Tanah Negara Berhad (ATNB) ― a special purpose vehicle ― through direct sale.
“MRB was arbitrarily paid RM1.5 billion as sale consideration. However, it has now come to the knowledge of MRB that thereafter the said 2,800 acres of land was subsequently bought by KWASA Land (EPF) for a sale consideration of about RM2.28 billion.
“MRB has therefore been short-changed and there was a difference of about RM800 million. MRB therefore contends that it is lawfully entitled to the difference of RM800 million. This sum is still unaccounted for, to date.
“The Board has reported this dubious transaction to the National Audit Department for a thorough audit and further investigation,” said Kok, who also noted that the total size for Lot 481 was around 3,385 acres and upon the sale of 2,800 acres, the balance of Lot 481 was reduced to 585 acres.
MRB chairman Sankara N. Nair claimed that the individuals behind ATNB seemed to be shrouded in secrecy, and neither MRB nor its board has any details regarding ATNB.
Apparently, the only ones who are privy to the information are the Auditor General’s office. MRB has requested information regarding ATNB.
The minister in charge of MRB back then was Tan Sri Bernard Dompok, who held the Plantation Industries and Commodities portfolio from 2009 to 2013.
When asked if the Board will be lodging a report against the previous Cabinet including Dompok, Sankara said he believed it will be a natural progression of MACC’s investigation.
“Once we have lodged a report to MACC, we believe the MACC will take it up in their investigations. We don’t need to lodge a specific report against Tan Sri Bernard Dompok,” said Sankara.
On a related note, subsequent to the land sale to ATNB, the Cabinet in 2010 had also instructed the rubber research specialist to utilise the RM1.5 billion it received to develop the remaining 585 acres of land.
In 2012/2013, the then Board had resolved to develop five facilities which included a new lab, an office tower, a discovery centre (museum), sports facility, and a SEDEC complex for technology transfer.
MRB’s board back then also allegedly had its arm twisted as it was unable to appoint a project management consultant in line with their resolution, but had to appoint KLIA Consultancy Services Sdn Bhd and KLIA Associates Sdn Bhd as their project delivery partner.
However, as the project only achieved a five per cent completion where it was still at the piling stage after six years, the previous Board had decided to terminate the project in February 2018.
“The Board has lodged a report to the Malaysian Anti Corruption Commission on November 27, 2018 in respect of the above, for breach of established MRB procedures which also resulted in about RM70 million in losses to MRB.
“Apart from this, the Board shall also proceed with disciplinary action against certain individual officers in MRB for wrongdoings,” said Kok.
In response to the carving out of their landbank, Kok has now issued a moratorium on land development for all of MRB’s land banks, including several approved joint venture projects.
She pointed out that MRB’s original purpose was to research rubber according to its first incarnation as Rubber Research Institute of Malaysia when it was established back in 1925. She instructed MRB to go back to its roots.
“After I came to this ministry, it’s time we bring back our research because this is MRB’s forte. I’m very pleased to see the board come to this decision. Besides revamping MRB, they are also planning to relook at the research and enhance it.
“So I hope MRB in the future will go along this direction. There are some developers who had approached MRB and even myself to develop certain properties and land under MRB and I would like to tell them that we are not interested. Our priority is research,” stressed Kok.
