PMO instructs Felda to act over Jalan Semarak project

A general view of the Kuala Lumpur Vertical City (KLVC) development in Jalan Semarak, Kuala Lumpur. — Picture by Yusof Mat Isa
A general view of the Kuala Lumpur Vertical City (KLVC) development in Jalan Semarak, Kuala Lumpur. — Picture by Yusof Mat Isa

KUALA LUMPUR, Feb 8 — Felda has been instructed to take disciplinary and legal action against those who have been negligent in safeguarding the interests of the government agency and its investment wing, Felda Investment Corporation Sdn Bhd (FICSB).

The Prime Minister’s Department (PMO) said the forensic audit report conducted on the Kuala Lumpur Vertical City (KLVC) project showed that there was non-compliance with procurement procedures and negligence in safeguarding Felda’s interests.

“Felda has been instructed to take disciplinary and/or legal action against those named in the audit report who are found to have been negligent in performing their duties, misrepresenting and not safeguarding the interests of Felda and FICSB,” it said in a statement.

KLVC is a project being developed by Synergy Promenade Sdn Bhd (SPSB) on a land belonging to Felda.

The statement said an audit firm appointed to conduct a forensic audit on the project had submitted a final report to the Prime Minister’s Department last Feb 2.

The Prime Minister’s Department then tabled the report to Prime Minister Datuk Seri Najib Tun Razak, as the minister responsible for Felda, on Feb 5.

“The prime minister agreed that a consultative council be set up to review the agreement between FICSB with SPSB and Synergy Promenade Kuala Lumpur Vertical City Sdn Bhd (SPKLVCSB),” it said.

Members of the committee comprise Datuk Dr Yusof Ismail, from the Finance Ministry; Economic Planning Unit (EPU) Director-General Datuk Nik Azman Nik Abdul Majid; Felda General Manager Datuk Ab Ghani Mohd Ali; Deputy Secretary-General at the Prime Minister’s Department Datuk Zainal Abidin Abu Hassan and Public Private Partnership Unit (UKAS) Director-General Datuk Seri Ahmad Husni Hussain.

The Prime Minister’s Department said Najib also agreed to the setting up of a domestic enquiry committee to take action on suggestions and recommendations in the audit report.

According to the department, the audit which began on Jan 4 this year encompasses all the process beginning with the proposal on the KLVC development project, the project implementation until the Felda land title transfer issue.

A total of 240 documents at the Felda and FICSB offices, as well as the Federal Territory Land and Mines Office and the Kuala Lumpur City Hall were  involved in the audit, which also involved interviews with relevant officers at the affected agencies.

The Prime Minister’s Department  has studied the audit report and agreed, as well as accepted the report, it said.

“Generally, the audit report has fulfilled the stipulated auditing objective and the government is satisfied with the report by the audit team,” said the department. — Bernama

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