1MDB’s pre-GE13 purchase of Air Itam land raises host of questions

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Questions have been raised following The Edge’s expose of 1MDB’s purchase of several plots of freehold land totalling 234 acres for RM1.4bn around the Air Itam area a week before GE13 last year.

A significant part of that area is occupied by many ground tenants; so there would be encumbrances to the land. The Edge even suggested that the vendors would have been happy with the deal while 1MDB appears to be on the losing end.

The Chief Minister has raised the followed key questions:

1 Malaysia Development Bhd (1MDB) must answer 3 main questions posed in the Edge Weekly’s Expose(22-28 September 2014) of the RM1.38 billion purchase of 234 acres of freehold land in Air Itam, Penang. The land was were transacted in two deals on April 29, 2013 – just six days before the May 5, 2013 general election with a third and final deal on Sept 23 2013.

The three main questions were:

Why was the purchase price of RM 1.38 billion, 95% higher than what some of the land was valued at just two years earlier in December 2011 and what would be the benefit to 1MDB and finally the people of Malaysia that owns 1MDB?

What happened to the 2013 general election promise by BN to build 9,999 units of public and affordable housing via 1MDB, comprising 6,666 low-cost flats of 700 sq ft each and 3,333 affordable homes of 1,000 sq ft each?

Based on the acre-age of the land and the number of new homes that the federal government has promised to build, would 1MDB be facing a loss of over RM1.5 billion and who will ultimately bear the losses?

Even if 1MDB does not proceed with fulfilling BN’s promise to build 9,999 units of public and affordable housing, it will still incur financial losses. Assuming a financing cost of 4%, interest payment on the RM1.38 billion it spent on buying the land, works up to RM 55 million interest cost a year.

Can 1MDB give a full explanation not only because public funds are involved but because it affects the lives of the nearly 3,000 families residing on the 234 acres of freehold land for 50 years?

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Atila

Anil bro, CM LGE mostly quiet on this land ? Why? Its supposed to be a big huuu haaa ma.

Ken

According to the survey by Ernst & Young (Asia-Pacific Fraud Survey Report Series 2013), Malaysia has been ranked as one of the most corrupt nations and listed as a country which is most likely to take shortcuts to meet targets when economic times are tough,

This is a signal that the BN’s Performance Management and Delivery Unit (Pemandu) has failed in its role to transform the economy.

http://www.themalaysianinsider.com/malaysia/article/malaysia-one-of-the-most-corrupt-nations-survey-shows

Ken

With the proliferation of Penang Hokkien phrases on this blog, I suggest those uninitiated readers can learn Penang Hokkien here:

http://www.penang-traveltips.com/penang-hokkien.htm

Ananars

Off topic but somewhat related to development.
Heritage building now have 4 legs that can move from one location to another location at 218, Macalister
http://www.freemalaysiatoday.com/category/nation/2014/09/26/lets-debate-on-disassemble-and-reassemble-formula/

tunglang

You mean 4 legged like a CAT?

Nothing is surprising these days in CosmoKapitan Penang.
Next, these greedy recalcitrant developers will tell us they can resurrect a destroyed building on Easter Day!!! And MPPP will celebrate (with Niau Kong) what a miracle.
David Copperfield, can you do any better than this?

ong eu soon

Whether you are happy or not. One thing for sure that Goh Choon Lai is probably the most happy man to become a billionaire after years of bad luck.

metta

POT calling kettle black.

Pokidoki s/o rilakkuma

Charlie from New Zealand ?
Can propose to bring in kiwi birds in exchange 4 our Tapirs to create awareness of conservation hence friendship of land of hobbit sheeps with let’s say Penang Niau?

Ed G

What about the ‘Rizalman’ specie? I believe the NZ government cannot wait to gain possession for it.

charleskiwi

My dear Penang folks and all the Malaysian voters please don’t forget the promise that Najib made before the last GE that he will build one million affordable houses, if he was retained in Putrajaya. More than 16 months have passed, just how many of the one million affordable houses has he built or even about to be built or planned to build ? This is another typical one of his and Umno/BN empty promises and most important of all please remember this empty promise and several others the present administrator has made before you cast your votes in the… Read more »

kelty

Janji Naib:

Ken

Najib janji no toll at JB’s Eastern Dispersal Link (EDL) before GE13.
But now BN has to increase the causeway toll as much as 5x (two-way now) to pay the EDL cronies, and Singapore responded likewise with the same increase.
Our Transport Minister should note that one can reach the causeway without having to use EDL, so why should these motorists going to Singapore have to subsidise the cost of EDL?

Pokidoki s/o rilakkuma

Charlie,
Najib meant Lego blocks homes lah!
!
1st phase 1prima homes at Legoland for 1StarWars fans now ready.
2nd phase in progress at Doraemon fair launched at JB’s citisquare mall. Daraemon says many being built along Danga Bay but you need to pay RM25 booking fee first.

Supercally

And I will also remember all Pakatan DAP & PKR broken promises

Realist

Even his promiss to increase BR1M to RM1200 is not kept. How can he keep his promiss to build thousands of houses? If you are still hoping that he would it is time for you to stop dreaming.

ong eu soon

234acres is 10,193,040sf. If using lim guan eng’s logic of rm1000psf, the land should worth rm10billion. So the selling price of rm138psf is too cheap. No need land reclamation. The land at kampung Melayu is considered as prime areas. When the land at STP 1 is evaluated at rm1000psf, everyone seen to be very happy. What kind of business sense is this.

Ananars

Ong Eu Soon ; You are absolutely right. If I had brought at RM138 psf I would be laughing to the bank now. How could 1MDB be making a loss. Kg Melayu and all the areas are prime areas

Pokidoki s/o rilakkuma

Ah Soon. WELCOME BACK! Have someone contact u to join PAP? Your estate knowledge may provide u with ammunition to bombard those fools? Can recruit ah Lang Kopi Kia also:)

sugar n spice

Eu Soon so you are now free from pps fiasco ? the price paid for being social activist sometimes can be rewarding later (pps vs pap scenario).

advise foodie or kopi-o activist at anilnetto.com think hard b4 embarking on socially sensitive matter.

tunglang

No need kay-bo advice from ‘sugar-dependant’ of life goodies of CAT. Unless one is kay-bo with no courage to speak one’s mind. Ah Soon Ko is courageous, though not as tough as Bruce Lee, yet he did show what stuffs he has, unlike one who is talking … with no bile of courage yet insinuating indirect threat of physical harm to those who dare to speak up (learnt from black cake minions?) sugar n spice, you are the one who should be thinking very very hard about your future. More so if you cannot stand on your own 2 feet.… Read more »

Ken

If convicted, Ah Soon will be sentenced to one month’s imprisonment with a fine of RM200 or both. Magistrate has fixed Oct 31 for case mention.

lazlo

Ah Soon was lucky at Farlim. If he were to be at Bkt Mertajam ….

abb

anil,

this was not the only “expensive” deal done before GE.
theedgedaily also highlighted the huge premium paid by 1MDB to ananda and genting group for their power assets.
ironically, the genting group also disclosed an astronomical sum of RM190m was given generously to NGOs during the election year.
what is happening?

Yang

This is really a cheap minister. At this price it is only about RM134 psf and a song for M1DB who will make a fantastic profit from the land if it did not build any houses. This stupid Cheap minister is talking 2 years ago. Two years ago I bought an apartment at 200k, last year it was 290k and now it is 400k. Current land prices in the Air Itam areas is at least RM500 psf. Can 1MDB make a loss. Cheap Minister trying to find faults.

herman

Can you explain why BN cannot honour its GE13 promise to build, via 1MDB, 6,666 low-cost flats measuring 700 sq ft each, and 3,333 affordable homes of 1,000 sq ft each in Penang?

Yang

Why should he honour. You all voted in DAP CAT. Let DAP CAT fulfill his promise but to me … another bigger … deceit that only make broken promises.

kee

Herman, BN had been lying and giving fake promises since dr m’s time and these zombies still voted a bunch of pirates every 5 year without fail, and now you have another one added to the bodoh group.

I really would want to know whether the 9 families of kg buah pala have got their bungalows built for them ???

Yang

Kg Buah Pala was lucky enough because they got it before Change. Now after change we see more and more fate like Kg Siam. The 9 despite being cheated by the CAT, BN Najib is still gracious enough to provide them with a double storey on the mainland. But then we have blind and fool that fail to see blinded by the cat. BN is not lying its because you have fail to better your ownself.

Pokidoki s/o rilakkuma

9 kg buah Pala pro bn families may be janji High Chaparal estate n to keep silent otherwise MICkey have to do so for others they can’t afford now that 1MDB in RM38 billion debt not yet written off ?

Jack

From Yang’s reply, we now know why he is so angry. His power has been taken away by the people.

Ed G

Seems that you have made substantial gains in properties under the policies of this Cheap Minister.

Ananars

You will now need more money to buy properties to gain which is why the CAT policies is now favouring the rich and very rich especially the developers and not the poor or working class