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Friday May 16, 2008

Government pays Putrajaya Holdings RM1bil a year for office space


THE Government is paying almost RM1bil annually to Putrajaya Holdings for office space for 25 years.

In a written reply from Prime Minister Datuk Seri Abdullah Ahmad Badawi to Liew Chin Tong (DAP – Bukit Bendera), he said the real cost of constructing the federal administrative capital was RM11.8bil.

He said this included the development of government offices and quarters, the Putrajaya International Convention Centre and the official residences of the Prime Minister, his deputy, judges and other ministers as well as other public infrastructure.

Abdullah said the development of government offices was carried out privately on a build-lease-transfer basis, with Putrajaya Holdings using its own financing to construct the offices in stages on government land.

“The Government leases the buildings for a concession period of 25 years at a fixed monthly rate of RM2.50 per square foot.

“At the end of the concession period, the buildings will be transferred to the Government without any payment,” Abdullah said.

The total rent the Government paid to Putrajaya Holdings amounted to RM929.7mil last year, he said.

Liew, in a statement, said that in 1997, then Finance Minister Datuk Seri Anwar Ibrahim had told Parliament that the projected cost for Putrajaya was RM25bil.

“During the last administration, it was argued that the development was financed by the private sector.

“Yet, the so-called private sector is actually Putrajaya Holdings Sdn Bhd, which is 64.4% owned by Petronas,” he said yesterday.

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