Yeoh: MACC finds no corruption in KL retention pond loss as Cabinet protection order was revoked in 2016

KUALA LUMPUR, May 26 — The Malaysian Anti-Corruption Commission (MACC) said it found no wrongdoing in the alienation of land around the capital city’s flood retention pond because a 1998 directive to protect it was revoked in 2016, Minister in the Prime Minister’s Department Hannah Yeoh disclosed today.

The directive, made by the Cabinet under the first Mahathir government in 1998, would have turned the surrounding land into reserves, but the directive was not carried out for 18 years, the minister who oversees the Federal Territories said in a statement.

Yeoh previously urged MACC to investigate the land alienation in 2021. Earlier this month, she said KL’s flood retention pond has shrunk to just 30 per cent of its original size as the capital city faced days of severe flash floods caused by inclement weather.

“The MACC’s investigation revealed that no elements of corruption, embezzlement, or abuse of power were found in the alienation process or the Development Orders granted by the Kuala Lumpur City Hall (DBKL) to the developers,” Yeoh said.

“This is because the MACC found that while the reservation of the flood retention pond had been approved since June 19, 1998, the gazetting process had still not been carried out at the time of the land alienation. There was an 18-year delay for action to be taken to gazette this area,” she added.

The Kuala Lumpur Federal Territory Land Executive Committee agreed to revoke the reservation approval granted on June 19, 1998, in October 2016, a move that allowed the alienation approval of 80 acres of land to be given to the developer for mixed development.

The premium imposition totalled RM214 million, Yeoh revealed.

Seventeen land lots within the Jinjang and Batu flood retention ponds have been alienated to developers since 2016, causing an estimated 70 per cent shrinkage of the ponds’ capacity, as Yeoh warned that it could hinder efforts to mitigate floods.

Of the 17 lots, one had already been developed. Yeoh said a technical assessment by the city’s Department of Irrigation and Drainage (JPS) indicated the developed lot had become a serious hindrance to service works at the retention ponds.

The investigation was initiated in 2021 following media reports that garnered public attention and findings in the Auditor-General’s Report 2019 Series 2.

Among other things, the audit discovered that the alienation of six flood retention ponds had been approved by the Kuala Lumpur Federal Territory Lands and Mines Office (PTGWPKL) for residential and mixed-development purposes.

Yeoh said Federal Territories Department will expedite the gazetting process for the remaining 30 per cent of approved open spaces and flood retention ponds, expressing commitment to preserving open spaces and flood retention ponds.

Regarding the investigation, the minister said the commission reviewed all alienation and Development Order processes by examining documents and recording statements from witnesses involved, including the developers concerned.

The MACC also conducted a site visit to the flood retention pond area, and the appointed surveyor confirmed that no boundary encroachment had been made by the developer.

“Furthermore, the MACC has submitted a letter to DBKL as a reminder to ensure that all future development approvals take into account the risks and functions of flood retention ponds, and undergo a more stringent evaluation process,” she said.