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Rafizi: Why didn't Felda use its own firm to develop Jalan Semarak?
Published:  Jan 25, 2018 5:00 PM
Updated: 10:03 AM

PKR vice-president Rafizi Ramli wants to know why Felda did not hire one of its own companies to develop its prime land off Jalan Semarak, Kuala Lumpur, instead of hiring a private firm.

Rafizi said construction firm Encorp Bhd, in which Felda owns a 70.8 percent stake, was far more experienced than the current developer Synergy Promenade Sdn Bhd (SPSB).

"If Felda wanted to develop the land for profit, why was this land granted to a private firm when Felda's own subsidiary, Encorp, is a developer that is dozens of times bigger and more experienced?" he asked in a statement today.

The Felda-owned land along Jalan Semarak is being developed into the Kuala Lumpur Vertical City.

The project fell into the limelight after it was revealed that ownership of the land had been dubiously transferred from Felda to SPSB.

Felda has since regained ownership of the land, without cost, although a forensic audit and police investigation into the matter are being carried out.

The KLVC project comprises seven towers, whereby one - Tower1A - is under construction and scheduled for completion on Aug 17 next year.

Rafizi also questioned how SPSB is supposed to fulfil its agreement to pay Felda RM500 million, or 10 percent of the KLVC's gross development value, whichever is higher.

He asked if SPSB was financially capable to make the payment, or if it would have to resort fo pawning Felda land to fulfil the agreement.

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