PAC: Outdated land formula costs govt RM136.8m in Kampung Bohol deal, needs review

• The Public Accounts Committee said there is a conflict between the 2020 development plan, which designates the area as a retention pond and recreational park, and the 2040 draft plan, which proposes residential development. The tender process was reported to be brief, and the construction and land ownership registration are not yet fully completed.

KUALA LUMPUR (Aug 25): The parliamentary Public Accounts Committee (PAC) found that an outdated formula to calculate land prices led to the government losing about RM136.8 million in revenue in the case of the Kampung Bohol flood retention pond project.

In a PAC report on land development in Kuala Lumpur released on Monday, the committee said the issue involves the government’s proposal to build a water retention pond and the award of ownership rights for six plots of land to a developer.

It said there is a conflict between the 2020 development plan, which designates the area as a retention pond and recreational park, and the 2040 draft plan, which proposes residential development. The tender process was reported to be brief, and the construction and land ownership registration are not yet fully completed.

PAC said the developer had asked to own part of the land and promised to upgrade the pond to meet the Department of Irrigation and Drainage (JPS) standards at its own expense.

JPS first opposed the plan because it wanted the pond upgraded to a higher flood protection level (200 ARI), more than the 100 ARI standard at the time. There were also 1,275 public objections against turning the land from a reserve to private use.

Despite this, the project was approved at a special meeting led by Prime Minister Datuk Seri Anwar Ibrahim in November 2023. The developer won the project through a selective tender.

The developer was allowed to own 26 acres and paid RM41 million, based on the outdated formula that values land at only a quarter of its market price. It also had to spend around RM40 million to upgrade the pond, making the total cost about RM81 million.

PAC said the land’s real market value was RM217.8 million. This means the government lost about RM136.8 million by selling the land below its true value.

The government has told PAC it will review and update the old land pricing formula, which has been used for 30 years.

The PAC said differences in opinions about the technical specifications of the Kampung Bohol flood retention pond—including its design, depth, size, and maintenance—are seen as a critical issue.

There are concerns that this could affect the overall function of the flood retention pond.

The PAC has urged the government to review the land transfer and development plans for the Kampung Bohol flood retention pond to ensure transparency and protect public interest.

PAC also raised concerns about Lot 54780, a 0.86-acre police reserve land meant for a police station but transferred to a private developer. The land hasn’t been officially registered yet, and a private company has also claimed it.

The Ministry of Home Affairs (KDN) and Royal Malaysian Police (PDRM) plan to build the Brickfields Police Station on Lot 54780, a 0.86-acre police reserve land in Taman Desa, Kuala Lumpur, because the current station is in a rented private building.

However, the Federal Territory Land Working Committee approved transferring this land to a developer for condominium construction at RM1.91 million.

The government suggested using two smaller plots (Lot 51762 and Lot 51763, totalling 0.14 acres) as replacements, but KDN and PDRM rejected this, saying the smaller land is not suitable.

The PAC questioned the committee’s decision because it should have considered the needs of KDN and PDRM.

On Monday, the PAC listed some 11 recommendations in its call for an overhaul of Kuala Lumpur’s land development system. This was after it uncovered serious issues, including unchecked approvals, ignored public objections, and the sale of public land below market value.

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