Felda investment arm ex-CEO charged with deceiving board of directors

The former chief executive officer of Felda Investment Corporation Sdn Bhd (FIC) faced two charges at the Sessions Court today for deceiving the FIC board of directors.

The charges relate to the appointment of a company for a proposed commercial development project and the market valuation of 24 parcels of Felda-owned land, 12 years ago.

Zaid Abdul Jalil, 55, pleaded not guilty and claimed trial after the charges were read out before judge Rosli Ahmad.

In the first charge, Zaid (above) was accused of deceiving the FIC board in his capacity as CEO.

He allegedly misled the board into believing that Synergy Promenade Sdn Bhd was qualified to be appointed as Project Delivery Partner–Master Developer for the project "The Proposed Commercial Development On Felda Lots In Jalan Semarak, Kuala Lumpur”.

He is said to have known that the company was only qualified to be appointed as Project Delivery Partner–Master Planner.

The alleged deception led the FIC board to approve Synergy Promenade's appointment as Project Delivery Partner–Master Developer for the project, an approval it would not have given had it not been misled.

Market value fraud

On the second charge, Zaid, in his capacity as CEO, is accused of deceiving the FIC board into believing that the market value of 24 Felda-owned lots slated for commercial development, as reported by Firdaus & Associates Property Professionals Sdn Bhd, was RM330.96 million, when he knew the actual reported figure was RM691.7 million.

The Valuation and Property Services Department (JPPH) had initially estimated the market value of all the lots at RM180 million, and the accused also knew that JPPH had never given Felda that initial estimate.

The deception purportedly induced the board to accept an offer from Synergy Promenade based on a minimum guaranteed return of RM500 million or 10 percent of gross development value, whichever was higher, a decision the board would not have made had it not been deceived.

Zaid was accused of committing the offences at the Board Meeting Room, Level 50, Menara Felda, Platinum Park, No 11 Persiaran KLCC, on Jan 16 and April 29, 2014.

He was charged under Section 417 of the Penal Code, which carries a maximum of five years' jail, a fine, or both.

RM50k bail sought

Deputy public prosecutor Radzi Shah Ab Razak sought RM50,000 bail with one surety per charge, requiring the accused to report to the MACC office monthly and surrender his passport to the court.

The accused's lawyer, Shahrullah Khan Nawab Zadah, requested bail of RM10,000 for each charge, citing his client's financial difficulties and his full cooperation throughout the investigation.

"We also seek the court's permission for the accused's passport to be surrendered only after he returns from umrah. It is from Nov 4 to 14 and was paid for in July," he said.

The court allowed the accused to be released on RM60,000 bail with one surety for both charges, along with the additional conditions sought by the prosecution, and fixed Oct 29 for the submission of documents.

The MACC has opened six new investigation papers into allegations of misappropriation, abuse of power and corruption involving Felda and its subsidiary, FIC.

The Kuala Lumpur Vertical City investigation is one of seven probes involving Felda and FIC, comprising six new papers and an existing one.

The investigations focus on asset purchases and investments by both entities between 2010 and 2020, suspected to involve corruption, misappropriation and abuse of power.

- Bernama

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