PARLIAMENT | An investigation has found the involvement of former prime ministers and defence ministers in land swaps deals involving the Defence Ministry's real estate.

This was clear in 13 out 16 land swap deals investigated, said Defence Minister Mohamad Sabu when tabling the final report of the Governance, Procurement and Finance Investigating Committee's probe on his ministry in the Dewan Negara today.

"The political consideration was above the interest of the government," he added.

However, Mohamad did not name the executive members implicated in the deals.

He only noted that 12 of the land deals were undervalued and that some contracts were given to unqualified developers.

He also revealed that a total of 12 land deals were awarded via direct negotiation.

Only five out of 16 projects were completed, while four projects had been approved in principle by the cabinet. Three land deals are yet to be inked whereas the agreement for one project had been signed. One has failed while two are under construction.

Unsolicited proposals

The committee also found that four of the land deals were struck at a lower price causing the government to lose RM166.81 million. Only two land swap deals were included in the development plan of the ministry while the majority of them were determined by the private sector.

Mohamad said 10 deals were initiated by unsolicited proposals from the private sector which determined the land to be swapped and ultimately proposed the development projects to the ministry.

He pointed out the cabinet made its earlier decision on the land swap deals without being informed of the actual cost of ministry's land parcels. It was only briefed on the proposed lots to be swapped by private companies. 

Responding to a question at a press conference later, Mohamad denied that Dr Mahathir Mohamad was involved in the land swaps which started in 1997 during the latter's first stint as prime minister.

"No (it did not take place during Mahathir's era), only after his era," he said, adding the committee thus far found criminal elements in two land swap deals.

"The other cases still under scrutiny. Once we find anything suspicious, we will lodge a report with the MACC," he added. 

On Feb 19, Mohamad disclosed that 16 of his ministry’s projects suffered over RM500 million losses due to mismanagement and other factors.

The losses involved projects dating back to 1997. 

These include two military bases in Paloh and in Hutan Melintang, which were allegedly built on the instructions from the previous BN government to have their military voters transferred to the areas for political purposes.

Two days later, Mohamad's special functions officer Mohd Nasaie Ismail lodged a MACC report over the Hutan Melintang and Paloh bases.

The MACC report was based on the investigation committee’s findings, the latter of which was led by the former auditor-general Ambrin Buang.

Between 1997 and May 9 last year, those who served as defence minister were: Syed Hamid Albar, Najib Abdul Razak, Abdullah Ahmad Badawi, Ahmad Zahid Hamidi and Hishammuddin Hussein.

Abdullah succeeded Mahathir as prime minister in 2003 while Najib became prime minister after Abdullah stepped down in 2009.

A 59-page summary of the report is available from the Defence Ministry's website with the full report expected next Monday.

In the report, the committee also proposed that land swap deals should be awarded via open tenders with due diligence practised.

Mohamad said the MACC had not yet summoned Hishammuddin for a statement.

Hishammuddin had previously denied the army camps were built for political purposes during his time. 

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