T'ganu land acquired for RM2.3mil less than valuation
The 2011 Auditor-General’s Report has found that the Kuala Terengganu Land Office paid over RM2 million less than the official valuation in compensation for a piece of land the government had acquired.
The 2011 Auditor-General’s Report has found that the Kuala Terengganu Land Office paid over RM2 million less than the official valuation in compensation for a piece of land the government had acquired.
Lot number PT 899K located in Mukim Chendering, Kuala Terengganu, was valued at RM6,594,744 by the state Asset Valuation and Services Department (JPPH)
However the land office only disbursed RM4,200,000 in compensation in exchange for the 4,2274-hectare plot of land for the construction of the GHM Hotel.
The amount was RM2,394,744 or 36.3 percent less than what JPPH valued it for.
In addition, the audit report also stated that the Kuala Terengganu Land Office and its counterpart in the Marang district also underpaid compensation below the official JPPH valuation for 10 other acquired properties.
Cumulatively, only RM1,246,249 compensation was shelled out instead of the RM1,500,180 value of the official state valuation for the 10 properties.
This represented a shortfall of RM315,931 from payments to those whose land was taken by the state.
When queried about the matter by the National Audit Department over PT 899K and other cases, the Kuala Terengganu Land Office replied on June 7 that JPPH valuations are only guidelines and not actual value.
“The official valuation by the JPPH is only a guideline to set the ceiling price so that valuations below current market price to interested parties can be avoided,” read its reply to the Auditor-General’s office.
According to economic principles, a ceiling price is effectively set below the optimal market price.
The Marang Land Office answered on June 5 that the reason it underpaid compensation for acquired land was because when the JPPH valuations was done, the acquired land were mistakenly classified as a “built-up” property when it should actually be “vacant” land.
The office said that they simply paid the lesser amount which is at par with “vacant” properties minus the 23 percent markup of “built-up” land.
Works done before takeover finalised
Other peccadilloes pointed out by the 2011 audit report with regard to state land acquisitions include infrastructure works being done on acquired properties in Marang, before the land takeover was finalised.
Works on roadside drainage on six properties in Mukim Rusila Marang were done in 2006, prior to the paperwork to apply for the land takeover being filed at the Marang Land Office.
Only after complaints from landowners did the Marang District Council file its acquisition application in 2011.
Asked about the oversight by the Auditor-General’s office, the Marang Land Office in its June 5 answer blamed the Marang District Council for proceeding with the project before consulting with the Land Administrator on the acquisition process.
All six plots of land were later officially acquired and gazetted in April this year.
The Kuala Terengganu Land Office was also chastised in the audit report over various incomplete and erroneous paperwork, un-gazetted land acquisition and failure to bring complaints and disputes to be lodged and settled in the courts.
The land office replied to the Auditor-General’s query on the above stating that it had problems with staff shortages in bringing disputes to the courts and has taken note of the documentary shortcomings pointed out and is addressing it.
For the un-gazetted land acquisitions, it said these were done in cases which involved “projects which needed to be fast-tracked”.
Similar documentary shortcomings were also pointed out by auditors in the Marang District Office, who also stated that they are taking corrective measures.
The Auditor-General’s office has chastised both land offices and advised the respective land administrators to be more careful in ensuring that documentary, regulatory and legal requirements are met and the interests of the state government and the rakyat are both looked after.
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