Kok (second, right) at a meeting to discuss the Bohol flood retention pond issue with Fadillah (right) and Dr Zaliha (facing Kok) in Parliament. — Courtesy photo
Federal Territories of Kuala Lumpur Lands and Mines Office (PTGWP) has clarified how it arrived at the low sale price for plots of land at the Kampung Bohol flood retention pond.
A PTGWP senior officer, who did not want to be named, said the premium for the six plots of land with a 99-year lease was calculated based on a formula given by the Valuation and Property Services Department (JPPH).
“The calculation was based on a formula in Rule 8(b)(i) of the Federal Territory of Kuala Lumpur Land Rules 1995.
StarMetro article on June 24.“The formula is ¼ x land value x 1/99 x lease period.
“There was no wrongdoing involved; we just used a gazetted formula that was endorsed by the government,” the officer said.
The officer acknowledged that the premium for the six plots was low, but added that it was also based on land approval conditions, market value from JPPH, land status and land location.
On June 24, StarMetro’s report titled “Low price for Bohol land queried”, saw PTGWP come under scrutiny for offering a low price for the land at Kampung Bohol flood retention pond.
Residents of Kinrara in Puchong, Selangor, who live near Bohol pond, called for an explanation on the land deal, stating that the premium was below market value.
In a press conference, Mohammed Nasser Yusof, acting as a lawyer for the residents, said the developer was to pay RM74 per sq ft for 10.1ha of land surrounding the pond.
Nasser pointed out that based on the premium of RM41mil and the RM40mil cost to redevelop the pond, the figures were too low since Kampung Bohol land was valued at RM200 per sq ft or more.
He claimed that the government would incur losses from the low price offered to the developer and requested that the government clarify the pricing criteria.
Preserve Kampung Bohol Flood Retention Pond Coalition coordinator Datuk Ng See Eng said he was made aware of the formula used to calculate the premium by PTGWP deputy director (Land Registration sector) Mohd Firdaus Ibaruslan during a meeting held at the Parliament building on July 1.
“I was with Seputeh MP Teresa Kok, Deputy Prime Minister Datuk Seri Fadillah Yusof, Minister in the Prime Minister’s Department (Federal Territories) Dr Zaliha Mustafa and department heads from Kuala Lumpur City Hall (DBKL), Drainage and Irrigation Department (DID) and PTGWP.
“They all acknowledged that the price was too low and that it was time to revise the formula.
“In addition, the prime minister had said that all sales of government land and projects must be carried out by open tender to get the best value and the best company to do the job to benefit the government.
“But in this case, the government lost money, so what is the point in calling for an open tender if we are going to rely on an old formula?” Ng said.
When contacted, Kok confirmed that she attended a meeting on Monday to discuss the Bohol pond issue and the low price of the land there.
“Yes, I have been made aware of the formula (for premium calculation),” she said.
“But I am sad to report that this project is going through despite our arguments.
“However, we are not going to let things go easily.
“We will ensure that all the conditions are met and fulfilled by the developer regarding the Bohol flood retention pond upgrade.
“It is the main condition that must be fulfilled before the housing project can take off.”
Prior to this, StarMetro reported that six plots of land surrounding the Bohol pond had been alienated for residential developments, including a Federal Territories Affordable Housing Project (Rumawip), Madani Housing and a condominium on three plots.
The developer would be free to decide on the types of projects to construct on the remaining land plots.
On May 16, Dr Zaliha stated that the developer was required to upgrade the retention pond before receiving a development order for the alienated plots of land.
Upon checking with DBKL, no development order has been submitted yet by the developer.
