Two held over FIC London hotel purchase

Property said to be overpaid by RM110mil

PETALING JAYA: Two former key officials of a real estate agency were arrested in relation to Felda Investment Corporation Sdn Bhd’s (FIC) purchase of a high-end property in Kensington, London.

FIC – the investment arm of Felda – acquired the four-star hotel between 2013 and 2015 for a total of £60mil (RM334mil).

Sources said the property was overpaid by at least £20mil (RM110mil) and the Malaysian AntiCorruption Commission (MACC) is now probing this extensively.

Both men were detained at about 1pm yesterday when they were summoned to the MACC headquarters in Putrajaya to give their statements.

Presently, one is a director of an asset management consultancy firm, aged 45, while the other is a 36-year-old head of a property unit in a postal services firm.

It was learnt at the time of the hotel purchase that they held the post of chief corporate adviser and director of a real estate agency.

Sources said both men were suspected to have manipulated the purchase price of the hotel, resulting in the FIC paying higher than the actual market price.

MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed the arrests.

Azam said the anti-graft body believed they could shed more light on the case.

They will be held overnight and remanded at the Putrajaya court today to assist in the investigation.

So far, anti-graft officers have recorded statements from 11 key witnesses, mostly FIC senior officials, and more are expected to be called in.

On Monday, three boxes of documents were carted away after the officers raided the FIC office in Balai Felda.

FIC was established in 2013 with a focus on real estate, hospitality and the oil and gas sectors.

The London hotel comprises 62 units of guest rooms and two units of three-bedroom service apartments.

In December 2014, then Felda chairman Tan Sri Mohd Isa Abdul Samad, who opened the hotel, said it was the 12th investment in Felda’s group hospitality portfolio.