The Malaysian Insight

FEDERAL agency Penang Regional Development Authority (Perda) had filed two suits against its former chairman, Shabudin Yahaya, and four directors over alleged fraud, power abuse and gross negligence. 

New chairman Haniff Khatri Abdulla said the suits were over two land sales for development during their tenure, which had resulted in tens of millions of ringgit in losses.

The suits were filed at the Penang High Court earlier this week.

The first suit filed on Wednesday concerns the sale of a 3.7ha plot of land in Tok Keramat, Nibong Tebal, that was sold in June 2015 at below market price, causing Perda to lose more than RM17.7 million.

Haniff said the court has set March 13 for mention of the first suit.

The second suit filed yesterday concerns the sale of a 2.3ha plot of land in Sg Baong, also in Nibong Tebal, which incurred an estimated loss of RM1.9 million. No court date has been set yet.

“The sale prices were far below market prices at the time. We recorded losses that could not be justified,” he said at the Perda office today.

Haniff said Perda was pursuing legal action in a bid to get back the two plots of land or, alternatively, compensation inclusive of interest.

“Action will also be taken against five directors from the previous board, including the former chairman, Shabudin, over alleged fraud, power abuse and gross negligence.”

Shabudin, the Tasek Gelugor MP formerly of Umno, recently joined Bersatu, chaired by Prime Minister Dr Mahathir Mohamad.

Haniff said political issues had no bearing on Perda, a federal agency tasked with raising the people’s socio-economic well-being.

“Anyone joining any political party is not Perda’s business. Perda is not a political entity. We are not influenced by political changes. We will not stop taking action, regardless of a person’s political background.” 

Haniff said action was also being taken to sort out two other land deals that failed to result in their intended purposes.

In April 2015, Perda, via its subsidiary Perda Ventures Incorporated Sdn Bhd, signed a deal with the company to buy 18.3ha of land in Simpang Tiga, Tai Tong in Tasek Gelugor at more than RM36 million.

Haniff said until today, the land has yet to be registered under Perda.

“Failing to get the title resulted in about RM36.7 million in losses. If we take into account the disbursements forwarded to the lawyers, the losses come to RM39 million,” he said.

He said Perda has since terminated the services of the solicitor appointed to handle land purchases and ownership registration, and was hiring a new solicitor.

He said if the matter could not be resolve, legal action would be taken against the parties involved, including the previously appointed solicitor.

Haniff also said Perda has suspended Perda Ventures Incorporated’s board of directors and taken over its role.

“Perda has also terminated the power of attorney of the board. If development on land authorised by the subsidiary has started and is headed towards completion, it will be continued if the development is in Perda’s interest.

“I am heading the interim board of directors. The staff are not affected. They will be work as usual and enjoy the same benefits,” he said.

Meanwhile, on a 12.2ha plot of land in Teluk Bayu, Teluk Kumbar, Haniff said Perda has cancelled two development agreements inked in July 2012 and September 2017 that had come to naught.

“There has been no development on the land, defeating the purpose of Perda entering into the deal with a third party. Both deals have been terminated.”

He said the losses incurred from loss of business opportunities were also being calculated.

“Perda will now identify suitable programmes to development on the land, such as aqua tourism.” 

Haniff said Perda was still looking into 11 other cases, and needed more time to study documents from five to six years back.

He said it would take another three to six months to settle the 11 files and the Perda Ventures Incorporated issue.

“Perda has swayed from its focus to develop the people’s socio-economy and focused instead on real-estate development when its job was not to be a land developer.”

However, Haniff said ongoing housing projects under Perda would continue but those that had yet to start would be reviewed.

As for affordable housing projects, he said Perda had begun discussions with state and federal agencies to better coordinate such projects. – February 15, 2019.