Land transferred to interior design company with no experience in development projects.
Questions are being raised about the development experience of local company Synergy Promenade Sdn Bhd, reported to have taken over ownership of the Jalan Semarak land here from the Federal Land Development Authority (Felda).
Malay daily Berita Harian cited an unnamed source claiming that Synergy Promenade is an interior design company with experience in handling some interior projects in Menara Felda and Istana Negara, but none in managing development projects.
“There is no reason for the land to be transferred to Synergy Promenade. Granted the full power of attorney (PA), the company already has enough power to do the development works on behalf of Felda.
“Synergy Promenade holds the PA only as an agent while Felda is the principal so that it could get the development order (DO). So, why would the land need to be transferred to the company?” the source was quoted saying.
According to the source, Synergy Promenade should have only imposed a third-party charge on the land as it had already acquired the DO as well as a lease agreement with Felda Investment Corp (FIC) for a large section of the tower that was to be built.
The source said the third party charge can be collected from the project itself and not from the land, as the company is responsible to fund the project.
The source claimed that in order for banks to approve loans to the company or the project, Synergy Promenade should have a creditworthiness and value to the bank.
Berita Harian also reported that Synergy Promenade was registered on June 15, 2006, and recorded its activities as property developer and construction contractor, general contractor, and general business.
The newspaper added that its checks showed no project developments had been carried out by Synergy Promenade.
Two of the directors of the company were named in the report as Noraini Soltan and Abd Rahman Soltan.
The newspaper’s source said that although the allegations have not yet been proven, what was done by the company should not have been a practice by a master developer.
“They should not have read on their powers under the PA only, but should have also read on the development agreement with FIC.
“In the agreement, the company should be handing over the completed unit, the sales, and etc. Not take over the land,” the source was quoted saying.
In a separate article today, Berita Harian also reported Felda chairman Tan Sri Shahrir Ahmad denying claims that the plantations giant had delayed filing a police report on alleged land transfer.
According to Shahrir, the complaint took a while to be filed as Felda had to follow legal and technical processes, including consulting the Prime Minister’s Department and the Attorney-General’s Chambers.
“If people questioned why took so long it was because the issue (land transfer) was the among the last problems that took place when I joined Felda.
“It took place between end of 2015 and 2016. Before that, there were several other issues, such as the hotel purchase by FIC in Kuching, and Kensington, London, which happened between 2014 and 2015 and is all currently under investigation,” Shahrir was quoted saying.
He was also reported saying Felda will hold a series of talks next month with its settlers to explain the issue to them.
“The land on Jalan Semarak is being maintained and we will take whatever action needed without fear or favour.
“All of the settlers’ land that had gained ownership, which is 85 percent, will immediately have ownership and has nothing to do with the land in Jalan Semarak,” Shahrir was quoted saying. – Malay Mail Online
Earlier report: Dec 22, Felda Wants Jalan Semarak Land Ownership Back