Several options were considered in building the new headquarters for the Federal Land Development Authority (Felda), including on its own land. But in the end it chose a prime location at the Kuala Lumpur City Centre (KLCC), a decision which is alleged to have been made within a short span of time of within 28 days.

Felda owns land in the Jalan Semarak area, and considered options at KL Sentral, Petronas land at KLCC, Kampung Baru land and also KLCC land owned by TTDI, but in the end it ended choosing the TTDI land, which was owned by the late entrepreneur SM Nasimuddin SM Amin.

NONE This came to light when former Felda Holdings Bhd managing director Mohd Bakke Saleh ( left ) was cross-examined by lawyer Razlan Hadri Zulkifli in the suit by the authority and its subsidiary against PKR leader Dr Tan Kee Kwong.

While Felda has initially dropped the idea to build its new headquarters in 2005, for which a ground breaking ceremony had been performed by then-prime minister Abdullah Ahmad Badawi, the idea regained momentum in 2006 and 2007.

Bakke told the court during cross-examination several proposals were made regarding Felda’s new corporate headquarters.

“Felda was offered two parcels in KLCC, one owned by Petronas and the other by TTDI, while another parcel was offered at KL Sentral. Felda met Petronas chairperson Hassan Merican, but discussions fall through.”

“Our initial offer price was RM650 per square feet which was initially made in July 2006, but in the end we agreed to pay RM930 to meet the asking price offered by TTDI in October 2007,” he said, with TTDI as the developer.

A valuation report was done by CH Williams dated Oct 26, 2006, where an agreement was immediately reached with TTDI.

Three days later, Felda gained approval from the then-Deputy Prime Minister Najib Abdul Razak via a letter dated Oct 29, 2007 and subsequently the deposit payment was issued.

'No impropriety in location

'

Another witness, present Felda director-general Dzulkifly Abd Wahab, 56, who had been with the authority for 34 years, today denied it was possible for three individuals - Najib, Bakke and Nasimuddin - as alleged by Tan had set up a deal to purchase the property behind the board’s back.

“As early as 2006 the Felda board was already looking at alternate locations instead of the Anjung, Jalan Semarak location. Therefore to suggest that there was a meeting in 2007 without the board’s knowledge by three purported individuals only to shift from Anjung to KLCC is plainly untenable,” he said.

“As to the purported involvement of Najib with regard to the decision to purchase Menara Felda, there is an official platform for the Felda management to meet Najib, who is the minister in charge of Felda. The management considered various alternative locations to site the Felda headquarters and in the end KLCC was chosen,” he said, adding Najib was briefed over the project.

Echoing Bakke’s sentiments earlier, Dzulkifly said KLCC is the most sought-after corporate address in Kuala Lumpur as it has high visibility and is strategic.

azlan Dzulkifly testified that Tan’s statement in Suara Keadilan with the title “ Felda bankrupt ” had put Felda in a bad light as they received queries from banks such as Citibank and Rabobank, Felda settlers, and staff as well as Dubai-based investors.

Furthermore, he claims that Suara Keadilan’s publication were widely available in Felda and the defamatory words have also become the subject matter on blogs, ceramah, the Internet and other media.

“It suggests Felda’s conduct its affairs in a dubious manner with no proper corporate governance and has made a bad financial decision to purchase Menara Felda. It would be reasonable to suppose that commercial parties including financial institutions would be hesitant to deal with Felda.

“The defendant (Tan) actually has no personal knowledge of the truth of the matter and the defamatory allegations are based on hearsay,” he said.

Turning the tables on Felda

However, Razlan, during cross-examination, turned the tables against Dzulkifly, when the witness admitted that his testimony over Suara Keadilan was available in Felda, or comments made on the Internet were based on hearsay.

azlan Razlan: Are Felda settlers PKR members that they read Suara Keadilan ?

Dzulkifly: I do not know, I received report from my regional managers.

Razlan: So you are saying you depended on hearsay statements, ie, your managers?

Dzulkifly:

Yes.

Razlan: Were your corporate communications unit not doing their job in countering such reports?

Dzulkifly: Yes, I even had to go round to 11 settlements to explain.

Razlan: You said such matters were brought up in ceramah and also the Internet, can you name the Internet (blogs or portals)?

Dzulkifly: No, I do not go on the net and depended on my managers.

Razlan: You said Felda suffered irreparable damage, was Felda not granted loans since June last year?

Dzulkifly: Yes loans were granted.

Razlan: So how can you say Felda suffered irreparable damage?

Dzulkifly: (kept quiet)

Razlan: Was there any entity which had withdrawn their investments from Felda?

Dzulkifly:

No.

Razlan is assisted by lawyer Ho Kok Yew. Counsel Firoz Hussein Ahmad Jamaluddin and Mahinder Singh Dooku appeared for Felda.

Felda and Felda Global Ventures Holdings Sdn Bhd are suing Tan for RM200 million for defamation.

The hearing continues tomorrow before Justice Zabariah with Tan expected to take the stand.