Two businessmen lodged a report this morning with the Anti-Corruption Agency (ACA), alleging that the Malacca Land and Mines Department had paid more than RM300,000 to an individual, ostensibly as compensation for acquired land.

Department officials could not be reached for comment this afternoon.

Goh Pok Siak @ Goh Doh Chek and Foo Wah Ann filed the report at the ACA headquarters in Putrajaya, accompanied by DAP state assembly representatives Goh Leong San (for Tengkera) and Lim Jak Wong (Bachang).

According to the report, a copy of which was made available to malaysiakini , the Malacca government undertook a project two years ago to restore and upgrade the road from Simpang Empat in Malacca up to Jalan Muar in Johor. The project, estimated to cost RM400 million, will upgrade the road to a four-lane dual carriageway.

Eight shop operators in Alor Gajah - whose property fronts the road - were asked to move out by this month. They include the two complainants and a company that owns the land.

A total of RM49,200 was distributed among the eight at the end of last year, while the land owner received RM143,000.

Additional payment

However, the complainants said an additional payment was made to an individual who was not affected by the project, but who is allegedly connected to the property valuer engaged by the department.

The businessmen alleged that the individual - who was named in the report alongside the property valuer - had received RM325,000 from the department as 'compensation'.

The complainants, who submitted documentary evidence to the ACA in support of their claims, questioned the link between the department and the individual.

They said they believed that the individual was working for a middleman who was helping the property valuer to negotiate with the tenants.

"Explain procedures'

Leong San, when contacted, urged the department to explain its procedures in awarding compensation for acquired land.

"The matter was brought to my attention because some of the tenants are unhappy with the amount of compensation received. Some were paid as little as RM2,000," he said.

He also questioned the payment made to the individual, saying that the information on the amount was provided in a written reply by the department during the state legislative assembly sitting last November.

"Does the evaluation report reflect the real value of the land and (lease of) those shops?" he asked.

Leong San said he had pursued the matter with the relevant agencies but that officials have been tightlipped.

He hoped the ACA will investigate the matter swiftly and take action against those responsible if irregularities are detected.

Last week, the ACA took two prominent figures to court on charges of corruption. Former Perwaja Steel managing director Eric Chia and Land and Co-operative Development Minister Kasitah Gaddam both pleaded not guilty.