The Coalition of Good Governance (CGG) registers its concerns to the state government of Selangor and the state corporation, PKNS, on the recent news that the development of the PKNS Complex in Kelana Jaya is still being pursued.

The proposed development was at the centre of the RTPJ2 scandal involving the fraudulent attempt to convert the said property, which was blown open by the public and subsequently investigated by the Select Committee on Competency, Accountability and Transparency (Selcat).

The fact that such fraudulent attempt could take place and allowed to perpetuate, sadly give the impression and demonstrate the collapse of governance in all the organisations involved.

Early this year, concerned citizens of Petaling Jaya were again alarmed by the announcement by the joint-venture partner to PKNS, Melati Ehsan in its AGM that it was still banking on the project to develop the sports complex to go ahead. The public is well aware that the said property is one of the 157 titles that have been fraudulently converted in the RTPJ2 Scandal dubbed as “the Biggest Land Fraud in the History of Selangor”.

In the interest of governance and regulation to protect public interests, the announcement by a public listed company, knowing fully well the proposal has been rejected and at the centre of a state investigation,  merit a thorough investigation by the Securities Commission.

CGG appreciates the action taken by the Member of Parliament for Kelana Jaya, YB Wong Chen, to write to PKNS for an explanation of the status of the proposed development. In a letter signed by its general manager dated April 2, 2015, PKNS replied that:

“PKNS tidak boleh sewenang-wenangnya membatalkan projek ini kerana ianya mempunyai implikasi perundangan”

“ ... kemungkinan besar pihak Bayu Melati Sdn Bhd boleh mengambil tindakan undang-undang terhadap PKNS berdasarkan loss of profit.”

CGG views such a response of not being able to revoke a non-workable project for fear of legal action to be lame, knowing fully well the background of the case that the development could not be approved under the prevailing conditions and Act and the scandal that has erupted.

Again it unfortunately shows a total lack of governance and sensitivity in a state corporation.  The citizens of Selangor expect a state economic corporation to be taking action to dismantle the agreement to protect the interests of its key stakeholders, the rakyat, and not being defensive and allowing the state to be beholden to a public company.

‘MB, do the right thing’

CGG urges the menteri besar, who is also the chairperson of the board of directors, and other members of the board, namely YB Teng Chang Khim and YB Iskandar Samad  to do the right thing and take appropriate remedial action as proposed by Selcat.

In the Selcat report dated Nov 6, 2012 , signed by Teng, the following are significant findings and proposed remedy:

Para 38: Adalah pelik bahawa PKNS langsung tidak mengambil peduli dalam proses penyertaan awam mengikut Seksyen 13 Akta PBD apabila draf RTPJ2 disiarkan untuk bantahan dan rayuan awam.

Para 39: Sebaliknya PKNS hanya berminatuntuk memajukan tanah PKNS tersebut selepas draf RTPJ2 disiarkan dalam Warta Negeri dimana tanah PKNS tersebut telah dizonkan sebagai zon rekreasi dan tanah lapang.

Para 40: Oleh yang demikian zon tanah tersebut adalah zon rekreasi dan tanah lapang. Remedi undang-undang yang ada pada PKNS adalah Seksyen 37 Akta PBD yang seharusnya diguna pakai.”

CGG therefore urges the board of directors of PKNS to direct PKNS to invoke Section 37 of the Town and Planning Act for the authority or in this case the state to purchase the said land. The Clause is reproduced here:

Notice requiring purchase of land in certain cases

37. (1) Without prejudice to the operation of any written law for the time being in force relating to the acquisition of land, a registered proprietor of land

(a) For the development of whose land planning permission has been refused under subsection 22(3) on the grounds that the land is indicated in the development plan, whether expressly or by implication, as land intended for a public purpose and who claims that, by reason of the refusal, the land is incapable of reasonable beneficial use; or

(b) Who claims that, by reason of compliance with a requisition notice in respect of his land served on him under section 30, the land is incapable of reasonable beneficial use, may, in the prescribed manner, serve on the local planning authority a purchase notice in the prescribed form, requiring his interest in the land to be purchased in accordance with this section.

The COALITION OF GOOD GOVERNANCE (CGG) is a coalition of more than 50 civil society organisations (CSOs) formed to monitor democratic governance within the Klang Valley.