Duo detained by MACC in FIC hotel purchase probe

PETALING JAYA: Two men have been detained in connection with investigations into Felda Investment Corporation Sdn Bhd’s purchase of a luxury hotel in Kensington, London.

Both were detained at about 1pm yesterday when they went to the Malaysian Anti-Corruption Commission headquarters in Putrajaya to give their statements as part of the investigations.

One of the men is presently a 45-year-old director of an asset management consultancy firm while the other is a 36-year-old head of property unit of a local postal services firm.

At the time of the purchase of the hotel, the director was then the chief corporate adviser of a real estate agency while the other was a director of the 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.

“The company (real estate agency) was appointed by FIC to do a valuation and manage the purchase of the hotel,” said the source.

MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed the arrests of both men who would be held overnight and remanded at the Putrajaya court tomorrow.

FIC, the investment arm of Felda, was said to have acquired the four-star hotel between 2013 and 2015 for a total of £60 million (RM330 million).

Sources said the property was overpaid by at least £20 million (RM110 million). The hotel comprises 62 units of guestrooms and also two units of threebedroom serviced apartment.

MACC have so far recorded statements from 11 key witnesses as part of the investigations.

On Monday, MACC officers took three boxes of documents from the FIC office in Balai Felda.