Ministry lost RM258 million to Syed Mokhtar’s firm in land deal.
The Ministry of Defence (Mindef) allegedly lost some RM258 million by selling an airforce base at a discount to a company owned by tycoon Tan Sri Syed Mokhtar Al-Bukhary, The Edge Financial Daily reported today.
Syed Mokhtar AlBukhary is known to be closely linked to former ruling party Umno.
Quoting anonymous sources, the financial news daily said the land swap deal which was political in nature, involved Syed Mokhtar’s company Kelana Ventures Sdn Bhd (KVSB) receiving a 34 per cent discount.
The land in question was the former Royal Malaysian Air Force base in Kinrara, Puchong, a 101.81-acre (41.2-ha) base.
Incorporated in 1992, KVSB offers real estate development and investment services and is based in Johor Baru.
Defence Minister Mohamad Sabu revealed on Tuesday there were 16 land swaps involving 1,183ha owned by the ministry, at a value of RM4.756 billion and involving project costs of RM4.886 billion.
In return, the developers built army bases in Hutan Melintang (Perak), Segamat and Paloh (Johor) and Bera (Pahang), when the army’s top brass themselves had said these were not needed.
Mohamad said the new bases were set up to move army personnel, essentially to ensure vote banks for certain politicians.
The army votes would have benefited Barisan Nasional’s Sembrong MP Hishammuddin Hussein and Bagan Datuk MP Ahmad Zahid Hamidi. Both were former defence ministers.
In a statement today, the National Patriots Association said “heads must roll” over the land swap “shame”.
Its president, Brig-Gen (rtd) Mohamad Arshad Raji said it is a pity that the top brass then did not have the gumption to put their feet down against their political masters.
“Patriot had previously raised questions on the illegality of transferring voters to uncompleted military camps, such as Hutan Melintang, Segamat, Paloh and Bera.”
Arshad said there are more scandals to be uncovered, believing that the 16 cases are just the tip of the iceberg.
“There are more than 40,000ha of military land involved. Mindef must make a definite statement whether all the land has been privatised as alleged.”
The 16 land-swap deals are not part of the 350 cases mentioned by Attorney-General Tommy Thomas on September 20 last year concerning lopsided contracts favouring counterparties drawn by the previous BN government, Arshad said.
Those 350 cases involved highways, services, private financed build-lease-maintain-transfer, ports, and procurement.
Earlier reports:
Feb 21, Mindef Lodges MACC Report over Questionable Land Deals
Feb 20, Patriot: Name, Shame, Freeze Accounts, Impose Travel Ban on Mindef Land Scandal Culprits
Feb 19, Mat Sabu: Defence Ministry Lost RM500M in Land Swap Deals