EPF: Arrangements were done on an arm’s length basis

PETALING JAYA: The Employees Provident Fund (EPF) says it has no knowledge of subsequent arrangements between the Malaysian Rubber Board (MRB) and Aset Tanah Nasional Bhd (ATNB) after it purchased land from ATNB in 2012.

It said the purchase of the 2,330- acre (943ha) land from ATNB was done on an “arm’s length basis”.

The EPF said it followed a strict framework in all investments, which requires it to conduct robust due diligence prior to any transaction.

“The RM2.28bil purchase price was reflective of the fair market value of the land, given its prime location between Kota Damansara and Sungai Buloh.

“The transaction was done at an arm’s length basis for the development of Kwasa Damansara, a township with a mix of residential and commercial properties, infrastructure and public amenities,” it said in a statement.

EPF purchased the land in 2011 via its wholly owned subsidiary Kwasa Land Sdn Bhd from ATNB, a special purpose vehicle of the Finance Ministry.

The 2,330 acres were part of a total of 2,800 acres known as Lot 471, which MRB sold to ATNB for RM1.5bil.

The purchase was finalised on Aug 27, 2012, but a statement issued by Kwasa Land on that date made no mention of ATNB.

It only said that it had finalised the purchase price of RM2.28bil for 2,330 acres of “prime Rubber Research Institute land” in the heart of the Klang Valley for RM2.28bil.

The Rubber Research Institute of Malaysia is an agency that comes under MRB.

Kwasa Land Sdn Bhd is the master developer for the Kwasa Damansara township development.

EPF made payments in tranches to ATNB and MRB.