MACC PROBES FICʼs LONDON HOTEL BUY
FELDA Investment Corporation’s (FIC) purchase of a four-star hotel in Kensington, London, is under scrutiny. The Malaysian Anti-Corruption Commission has opened an investigation paper on the acquisition, made between 2013 and 2015, based on ʻnew informati
THE Malaysian AntiCorruption Commission (MACC) is now investigating Felda Investment Corporation Sdn Bhd (FIC) over the questionable purchase of a four-star hotel in Kensington, London.
In a statement, MACC said its chief commissioner, Datuk Dzulkifli Ahmad, gave the instruction based on new information received on the purchase made between 2013 and 2015.
Based on initial investigations, MACC said FIC was believed to have purchased the hotel at a much higher price than the original rate, causing millions of ringgit in losses to the investment arm of the plantations giant.
The commission said investigators had obtained all documents linked to the purchase and were processing them.
“A detailed investigation will be carried out to determine if there was corruption or abuse of power during the hotel’s purchasing process.
“MACC will call a few important witnesses soon to record statements to gather information and evidence before proceeding with the next step.”
MACC deputy chief commissioner (operations) Datuk Azam Baki told the New Straits Times yesterday that FIC’s case had no links to the Felda Global Ventures Holdings Bhd (FGV) crisis that was also under investigation by the commission.
He said the new evidence MACC obtained on the hotel purchase did not come from investigations into FGV.
“No connection at all (between FIC and FGV). (The information) isn’t from the FGV investigation.”
FIC was established in 2013 by the Federal Land Development Authority (Felda) with a focus on real estate, hospitality and oil and gas sectors.
It was reported that FIC had acquired the hotel in the upmarket Kensington area in London for £60 million (RM330 million), making it the 12th investment in the group’s hospitality portfolio.
The purchase was announced
A detailed investigation will be carried out to determine if there was corruption or abuse of power during the hotel purchasing process.
DATUK DZULKIFLI AHMAD MACC chief commissioner
by Tan Sri Mohd Isa
Abdul Samad, who was then Felda chairman, in December 2014.
Originally named Park City Hotel with 62 guest rooms and two units of threebedroom serviced apartments, it was renamed Grand Plaza Hotel.
This was to follow the branding of another upscale hospitality asset owned by Felda, the Grand Plaza Serviced Apartments in Bayswater, London, for which Felda paid £98 million in 2013.
When contacted, Felda chairman Tan Sri Shahrir Abdul Samad said it stood by its statement on Tuesday.
On Tuesday, MACC had said it was opening a new investigation paper against Felda, and Shahrir had said he was happy that the commission was investigating new leads into an old case.
“I hope the new information will assist MACC’s investigation into any corruption and abuse of power in Felda,” he had said.
Appointed chairman in January to replace Isa, Shahrir had said integrity must be a key principle in Felda so that the authority could remain focused on delivering value to stakeholders.
“If we can truly (return to our roots) as an organisation that is clean, efficient and trustworthy, I am certain our stakeholders will be the beneficiaries,” he had said.