Jalan Semarak land development transferred back to Felda

KUALA LUMPUR: The controversial lots of land on Jalan Semarak, which were dubiously transferred to a private developer, have been returned to Felda.
Felda Chairman Tan Sri Shahrir Samad said the transfer of land was made following an agreement signed between Felda and the developer, Synergy Promenade Sdn Bhd (SPSB), on Monday.
Shahrir added that SPSB had voluntarily transferred the land ownership to Felda without any cost incurred.
"All of the property ownership letters have been registered back under Felda's name," he told a press conference at Menara Felda.
The issue came to light when a Malay daily on Dec 21 last year reported that Felda was at risk of losing rights to the land located in the strategic Jalan Semarak following a dubious land transfer.
The land is currently being developed under the Kuala Lumpur Vertical City project, involving a seven-tower project which includes an iconic Felda tower to be known as KLVC Tower 1A.
Shahrir previously was reported as saying that Felda was prepared to take all forms of action to regain ownership of the land, estimated to be valued at RM270 million.
Prime Minister Datuk Seri Najib Abdul Razak on Jan 4 said that an external audit firm has been appointed by the Prime Minister's Department (JPM) to conduct a forensic audit on the KLVC project, which is being developed by SPSB.
On the status of the KLVC, Shahrir said the project would proceed, with Felda and SPSB renegotiating the terms under the development agreement that was signed in 2014.
"The project was in danger of being discontinued, not due to our doing but because of the land transfer.
"We have no intention to stop the project. The issue was on why the ownership of the land needed to be transferred," he added.
Shahrir said under the development agreement, Felda would benefit from a minimum guaranteed return of RM500 million or 10% of the project's gross development value, whichever is higher.
"We still have the option to improve the terms and the concept of development," he added.
Shahrir assured that Felda would not interfere with investigations initiated by the authorities, pledging that nothing would be swept under the carpet.
He added that the police report which was made by Felda on Dec 12 and Dec 28 would not be retracted.
"We will not restrict or call for a stop of police investigations. It is still ongoing and we will not interfere. We will cooperate," he added.
Shahrir clarified that Felda had taken the necessary steps to address the issue since January last year, despite the report only being made public last December.