RM50M MORE PRICE SETS OFF ALARM BELLS
It was purchased at RM50m more than the market price
INVESTIGATORS probing into FIC’s purchase of a four-star Kuching hotel in 2014 are focusing on why the firm paid RM160 million for the hotel when its market price was RM110 million. They are studying the possibility that some parties may have embezzled the difference.
INVESTIGATORS probing Felda Investment Corporation Sdn Bhd’s (FIC) purchase of a four-star hotel here was prompted by the hefty price tag that the company honoured.
Sources with the Malaysian Anti-Corruption Commission (MACC) told the New Straits Times that FIC paid about RM50 million more than the hotel’s market price during the 2014 acquisition.
It is understood that investigators were looking at the possibility that there were parties who embezzled the difference.
The source said checks revealed that the price of Merdeka Palace Hotel & Suites in Jalan Tun Abang Haji Openg was then hovering around RM110 million when it was acquired for RM160 million.
MACC yesterday raided six companies based here and the Klang Valley, which they believe were allegedly linked to the purchase of the hotel in question.
The raids were to gather evidence and facilitate the commission’s investigation into FIC’s purchases.
This investigation came on the heels of a similar ongoing probe, involving the company’s purchase of a luxury hotel in London on Dec 16, 2014, at £60 million (RM336 million), higher than the market price.
The commission, in a statement, said its chief commissioner, Datuk Dzulkifli Ahmad, had ordered investigations into the Kuching hotel deal.
Its investigators, the commission said, had stumbled upon
“certain information” on the purchase, in the course of their probing the London deal.
MACC said it had recovered and seized several documents believed to contain more details on the purchase from the series of raids yesterday.
“We will now study and check the documents recovered involving the Kuching hotel to see whether there are any elements of corruption or abuse of power in the process of acquiring the property,” the commission said.
The commission also said a few “important eyewitnesses” would be called in soon to have their statement recorded.
It will then decide on the next course of action.
The 10am raids in the Klang Valley involved Deloitte Malaysia, an audit and consultancy firm at Menara LGB in Taman Tun Dr Ismail, the FIC office in Balai Felda, Jalan Gurney in Kuala Lumpur as well as law firm Mohamed Ridza & Co (MRCO) at Wisma UOB Damansara.
The officers in Balai Felda left 10 hours later.
They came out with boxes believed to have been packed with evidence and information they needed in the probes.
Three flying squads deployed from the MACC headquarters in Putrajaya, joined their Sarawak colleagues to knock on the doors of three companies here, believed to be involved in the acquisition.
They are international property surveyors and valuers Raine and Horne International Zaki & Partners Sdn Bhd in Jalan Tun Ahmad Zaidi Adruce and international asset consultancy firm, Henry Butcher Malaysia (Sarawak) Sdn Bhd in Padungan.
The investigators also visited the office of real estate and land developer Gegasan Abadi Properties Sdn Bhd, only to be told that the company had moved two years ago.
MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed that the visit was part of the commission’s investigation into the case.
Azam said MACC had also formed a special task to investigate the high-profile case.
“We will investigate all angles and elements in our probe (over the purchase of the hotel in Kuching,” he said without elaborating.
The hotel, comprising 213 units of guest rooms and apartment suites, is located in front of the iconic Padang Merdeka here.
Yesterday evening, Deloitte Malaysia’s country managing partner Tan Theng Hooi, in a statement, acknowledged the commission’s visit to its office.
“The MACC officers requested our assistance in providing information relating to their investigation, and we are cooperating fully with them to provide all required information to assist their investigation.
“As a responsible organisation, we will cooperate with MACC and all other authorities in accordance with the provisions of the law,” Tan said.