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Come clean on military land deals, PM and cousin told
Published:  Oct 30, 2015 2:30 PM
Updated: 7:46 AM

Prime Minister Najib Abdul Razak and his cousin, Defence Minister Hishammuddin Hussein, must come clean on the commercialisation of military land as exemplified by the 1MDB purchase of the Sungai Besi military base, said a DAP lawmaker.

The MP for Kluang, Liew Chin Tong also questioned if Najib and Hishammuddin were playing a cat-and-mouse game on this matter.

Liew ( photo ) said he raised the issue in Parliament twice, where the latest written reply, on Oct 27, was just a one line denial that the Defence Ministry intended to convert military bases or land for commercial purpose.

In another parliamentary answer on June 8 this year, he said, the ministry stated it has no intention of selling military land, but admitted there is a plan to redevelop military bases in Penang, Selangor, Johor, Sarawak, Kuala Lumpur and Pahang with several companies, through land swap programmes.

Liew said that despite the government issuing repeated denials that military land is being sold, more and more military bases are being commercialised to make way for new developments, while the original bases are relocated to less populated areas.

For instance, he noted, the historic Sungai Besi military base was sold to 1MDB for the astonishingly low price of RM1.6 billion, or RM74.20 a square foot.

"This is in comparison to the market value of other prime land in Kuala Lumpur which is already being priced at between RM500 and RM1,000 per sq ft.

"1MDB also awarded a RM2.1 billion contract to Lembaga Tabung Angkatan Tentera (LTAT) to relocate its original defence units in Sungai Besi to eight new separate sites," he said.

Liew said the purchase of the former Sungai Besi air base is part of 1MDB's acquisition of 15 plots of land in Sungai Besi in 2013, which are being developed into the multi-billion ringgit Bandar Malaysia project.

He pointed out that former prime minister Dr Mahathir Mohamad estimated that the the government lost RM20 billion in this deal.

"What makes this 'too good to be true' deal for 1MDB even sweeter is the fact that it was awarded by direct negotiation and not open tender," he added.

Sweetheart deals

Meanwhile, Liew said Penang's landmark 400ha Butterworth Air Base is in an ongoing deal to be taken over by TSR Capital, which intends to transform it into a RM10 billion integrated commercial development project.

In Johor, he said the 74-year-old Kem Majidee was sold last year (notwithstanding an earlier tussle over rights to the land) to Syarikat Selia Pantai Sdn Bhd, which intends to develop it into a lucrative commercial and residential development known as Kota Southkey.

The government, he added, has billed the so-called 'land swap programme' as a win-win for both the government and private sector.

"However, when the government loses money in selling land to the private sector, it is the taxpayers who end up footing the bill.

"The biggest question to be answered is, why is the government relocating Mindef military bases and selling the land to private corporations?" Liew asked.

In allowing large tracts of land housing military bases to be sold to the private sector, Liew said, the government must consider whether this would jeopardise national security due to the classified nature of information and activities on the military bases.

"Parliament scrutiny is needed in order to ensure that national interest is not jeopardised. The (defence) minister can start by first revealing details of the deals so that it can be debated in Parliament.

"I urge the ministry to reveal how many military bases will be sold for redevelopment and how much will the government stand to lose from these sweetheart deals.

"Who will benefit from these deals? In the interest of transparency, the minister must explain the criteria used to select the developers, since the award was done by direct negotiation and without open tender.

"These questions need to be answered immediately," Liew added.


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