Panel plans more arrests over hotel buys

PETALING JAYA: After two high-profile arrests in as many days, more people are expected to be questioned over Felda Investment Corporation Sdn Bhd’s (FIC) purchase of “overpriced” properties.

Sources said the Malaysian AntiCorruption Commission (MACC) was expected to make more arrests soon involving “key players” who were the hidden hands behind the acquisition of hotels in London and Kuching.

In addition, the special investigation team will also be revisiting the FIC office as well as Felda headquarters in Kuala Lumpur to gather more evidence and documents.

“Other Felda and FIC-owned assets and properties will also be looked at closely to ensure there are no elements of corruption and abuse of power.

“The MACC will study and scru- tinise all documents, as well as contracts ‘ word by word’ to ensure there is no hanky-panky,” said a source closely following the probe.

Over the past 24 hours, the MACC detained two key officials in relation to both hotel purchases, which were said to be way above the market value.

Zahid Md Arip, 51, the special officer to the former Felda chairman, was the fourth person to be picked up and remanded yesterday to assist in the probe into FIC’s purchase of a Kuching hotel.

The hotel has 213 units of guest rooms and apartment suites.

On Monday, former FIC chief executive officer Zaid Abdul Jalil was arrested after being questioned for almost 12 hours over the London hotel.

The Kuching property was believed to have been bought at between RM40mil and RM50mil above its actual value by FIC – Felda’s investment arm – focusing mainly on real estate, hospitality and the oil and gas sectors.

Current Felda chairman Tan Sri Shahrir Abdul Samad revealed that the hotel, strategically located in the heart of Kuching, was bought for RM160mil in 2014 during the tenure of the previous FIC board members.

Earlier last week, three company directors, including the 57-year-old owner of the Kuching hotel, were arrested less than 24 hours after anti-graft officers visited six locations – three in the Klang Valley and three in Kuching.

Two of the suspects, aged 47 and 51, were directors of a company appointed as the agent to handle the purchase three years ago.

The MACC is also investigating if there is any link between the Kuching hotel deal and the other FIC-owned hotel in Kensington, London.

The probe into the Kuching hotel was, in fact, ordered by MACC chief commissioner Datuk Dzulkifli Ahmad after his officers discovered “discrepancies” while sifting through seized documents during the investigations into FIC’s acquisition of the luxury hotel in the upmarket Kensington area.

The London hotel, comprising 62 units of guest rooms and two units of three-bedroom serviced apartments, was also said to be bought at at least £20mil (RM112mil) above its value.

FIC acquired the four-star hotel between 2013 and 2015 for a total of £60mil (RM330mil). In December 2014, former Felda chairman Tan Sri Mohd Isa Abdul Samad launched the hotel.

Earlier on July 21, two former key officials, aged 36 and 45, of a valuation firm were also arrested in connection to that probe.

Both men were suspected to have manipulated the purchase price, resulting in the FIC paying higher than the actual value.

The arrests came following statements recorded from 11 key witnesses and seizures of dozens of boxes of documents from the FIC office in Balai Felda.