SYNERGY PROMENADE’S SIDE OF STORY
Firm explains transfer of titles of Felda’s Jalan Semarak land
PROPERTY developer Synergy Promenade Sdn Bhd has come up with its side of the story regarding the controversial transfer of titles of Felda land in Jalan Semarak, here.
In a statement on Saturday, a Synergy Promenade spokesman said the Kuala Lumpur Vertical City was to be built on parcels of land owned by Felda at Jalan Semarak, comprising three towers — 68 storeys, 75 storeys and 70 storeys — with a gross development value (GDV) totalling RM2.5 billion.
He said to meet the financing needs for the project, the company transferred some of the land titles to secure funding.
However, he said following the transfer of land titles, there were several allegations made against the company such as abuse of power, corruption and misconduct.
“For the record, the transfer of land titles was in accordance with the agreement reached between Synergy Promenade, Felda and Felda Investment Corp Sdn Bhd (FIC),” he said.
“We have also complied with the proper procedures and conditions through the Land and Mines Office,” he said.
The spokesman added that Malaysian Anti-Corruption Commission (MACC) deputy chief commissioner (operations) Datuk Seri Azam Baki had previously stated that there was no element of corruption nor abuse of power over the transfer of land titles.
“The MACC’s investigation showed that there was weakness in governance, and this matter was subject to police investigation. Subsequently, the police also closed the investigation and concluded that no further action would be taken,” he said.
He said if Synergy Promenade had intended to transfer the titles for its own interests instead of the development as Felda had alleged, the company could have sold the parcels of land directly to a third party.
“Instead, we transferred the titles to our name, thus causing us to bear the costs associated with the transfers, such as high stamp duty,” he said.
Of the 24 parcels of land listed in the agreement, he said Synergy Promenade only transferred 16 titles necessary for the development of the three towers as required by Felda.
The company had also informed Felda management over the transfer of the titles within a reasonable time frame, but there was no feedback received and only several months later (after the transfer process was carried out) the company was called for a meeting, he said.
“During the meeting, we explained to Felda the reasons behind the transfer.
“However, Felda refused to accept it and insisted that the titles be returned to them, and Felda had also chosen to reveal it through the media,” he said.
He said following the controversy, a memorandum of understanding (MoU) on the return of the titles to Felda was signed between Synergy Promenade and the agency to enable the development to proceed and to avoid further controversy.
He said Felda agreed to accept the land titles and promised to help resolve the crisis.
“Thus far, we only had one meeting with Felda and it gave us an assurance that we are to receive a proposal on this matter.
“Unfortunately until today, we have not received any proposal even though we have given them several reminders.
“Now that the six-month period stipulated in the MoU has passed, it has rendered the agreement null and void,” he said.
Synergy Promenade had written several times to Felda requesting feedback pertaining to the resolution on the development project, he added.
He said one of the MoU terms stipulated that the transfer of titles must be carried out in accordance with the proper procedures and laws.
There were two parcels of land subject to caveats where the authorisation from the state government was required for the process of transfer of land titles, he said.
“In accordance with the proper procedure, we need to submit an application to the Federal Territory Land and Mines Office (PTGWP) to obtain the approval from the authority and the issuance of a letter of consent to transfer.
“However, before we submitted the application, we were surprised to learn that the titles of the two parcels of land had already been transferred to and registered under Felda.
“Subsequently, we had written letters asking for clarification from the PTGWP several times on this matter,” he said, adding that no feedback had been received.
“We are of the opinion that there is a possibility of abuse of power, and the transfer process of the titles of the two parcels of land did not follow the proper procedures and we will lodge a report to the MACC on this issue,” he said.
At the same time, he said Synergy Promenade hopes to hold discussions with Felda’s new chairman Tan Sri Megat Zaharuddin Megat Mohd Nor, but as of Saturday, the company had yet to receive any constructive feedback from the agency.
“The proper solution should be done in the interest of all parties — Synergy Promenade, Felda and FIC. But if this is not the case, we have no other choice and will not hesitate to resort to legal action against Felda and/or FIC to enable us to obtain reasonable compensation,” he said.