The Matrade Center in Kuala Lumpur is an impressive looking building completed after many years of delay and million of ringgit in cost over-runs. To date, it has not been established what was the cause of the project's shortcomings.

Maybe the ministry in charge of the project has learned a few valuable lessons as they have now embarked on Matrade 2.0 as described in this Malaysiakini report ‘Malaysia in dire need of a convention centre’ .

The International Trade and Industry Ministry (Miti) has a simple plan to get such a mega-convention centre. According to media reports, Matrade will get an expo centre for ‘free’ under a ‘building- for-land’ deal according to Miti Minister Mustapa Mohamed.

‘The valuation of the land in 2007 was RM197 million and we are getting a RM628 million worth building so we are getting value for money for us. We need a big centre," he told reporters in Parliament.

The mammoth expo centre being built on a 13.1-acre site in Jalan Duta here is to be developed by Naza TTDI, a unit of the Naza Group, in exchange for 62.5 acres of state land at RM226 per square foot although the market value of the land could reach RM1.5 billion. The entire project will have a gross development value of RM15 billion.

The reasons given for awarding the award to the Naza group were incredulous as apparently it was based on the fact that the company had approached the ministry first with the idea of getting such a ‘free convention center’.

Naza has been the approved receiver for thousands of Approved Permits and one can only speculate as to why they have been favoured with such a land grant.

The government will be receiving a RM628 million building in exchange for RM1.5 billion of prime land. So in effect, Naza already makes a profit of RM872 million just on the market value of the land, less land improvement charges. Looks as if Naza is getting the land for free instead of Miti.

Just because they came up with the concept, that should not prevent the ministry from having an open or restricted tender from five or six different parties so that the government maximises the proceeds from this valuable parcel of land.

In fact the Finance Ministry should have firm restrictions for such transactions like:

1. Any deal above RM50 million must have at least two qualified bids

2. Any deal above RM100 million must have at least four qualified bids; and

3. Any deal above RM500 million must have at least six qualified bids

Now, it seems that if you can get the ear of the minister, you can come away with some nice freebies. I remember reading an article about the time when Tan Siew Sin was the Finance Minister. At the time, MCA was a powerful member of the Alliance (before BN).

Tan wanted to take a few days leave and went to see the Tunku Abdul Rahman. Tunku told him to take the time off. Tan asked, ‘Who will look after my duties when I am away?’ Tunku replied that he would take care of things. According to the story, Tan did not take his leave on that occasion.

Nowadays, Umno controls the Finance Ministry and the results have not been sterling. Just read the horror reports of the auditor-general each year and you will know what I mean.

Matrade 2.0 for free? Naw! Tell me another tall tale, please...