Thursday 28 Mar 2024
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PETALING JAYA: RM1 million in commissions paid to an “agent” to facilitate property purchases in London is one of the reasons why a top Felda Investment Corp (FIC) executive has been remanded by the Malaysian Anti-Corruption Commission (MACC) for five days until today.

Sources told The Edge Financial Daily that the officer is “helping” the anti-corruption agency with regards to agent fees paid for the purchase of properties in London worth RM830 million.

It is understood that the fees were paid by FIC and not the seller, which should be the normal procedure when facilitators are concerned.

It is not known if the officer, in his 40s, will be charged today when the remand expires. This is because for the payment to be made, the entire FIC Board would need to approve it.

The MACC is tight-lipped about the charge as investigations are ongoing, with more people expected to be picked up.

MACC deputy commissioner Datuk Mustafar Ali confirmed investigations are underway, but declined to elaborate.

It is however understood that the MACC is seeking the cooperation of Encorp executives to shed light on the purchases, as well as FIC directors to determine if procedures were followed.

Last May, FIC, the investment arm of the Federal Land Development Authority (Felda), paid RM239.72 million to buy a controlling stake in property developer Encorp Bhd.

FIC acquired 72.27% of shares held by Encorp’s two major shareholders: Lavista Sdn Bhd and Pegang Impian Holdings Sdn Bhd.

Both Lavista and Pegang Impian were jointly held by former federal minister Datuk Seri Effendi Norwawi and his daughter Efeida.

FIC also paid £60 million (RM330 million) to buy a Kensington hotel in London.

Felda had also paid £98 million (RM500 million) last year to buy the Grand Plaza serviced apartments in Bayswater, London.

FIC was incorporated in Malaysia on July 2, 2013 and is wholly owned by Felda.

 

This article first appeared in The Edge Financial Daily, on March 6, 2015.

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