Mara overpaid another property

KUALA LUMPUR: The National Oversight & Whistleblowers (NOW) has piled more pressure on Majlis Amanah Rakyat (Mara) by disclosing that the government agency had overpaid A$19.1 million (RM66.2 million) for three properties in Melbourne.
This came after NOW co-director Akmal Nasir revealed today a third property - 51 Queens Street, a 24 tenant office and commercial building, that was overpaid by Mara's investment arm, Mara Incorporated Sdn Bhd, by A$5.35 million (RM18 million) in March 2013.
The other two properties that were purchased by Mara Inc. at an inflated rates, that have been disclosed, were the Dudley International House, which was overpriced by A$4.75 million (RM15.2 mil), and 333 Exhibition Street by A$9 million (RM33 million).
"NOW has reviewed another document that was published by Quintessential Equity, a real estate fund who used to own the Queen Street property, on its website on the deal of the property.
"We found that the building was sold by Quintessential Group of Companies, the same company which sold the 333 Exhibition Street, to an unnamed group in January 2013 for A$16.65 million, and in March 2013 bought by Mara for an inflated A$22 million," Akmal said.
"It's impossible for the price to shoot up that much in two or three months," he told a press conference at NOW's office, here yesterday.
Akmal said that the nature and procedure of purchase of the 51 Queen Street was similar to the Dudley House and 333 Exhibition Street deals, and that it showed a systemic modus operandi which proved a criminal breach of trust.
"We are urging the police and the Malaysian Anti-Corruption Commission (MACC) to accelerate investigation to be in line with Prime Minister Datuk Seri Najib Abdul Razak's commitment for a full investigation on the matter," he added.
Akmal added that NOW is also demanding answers to the whereabouts of the RM66.2 million which was supposed to be used for the development of the Bumiputra community through education and business aids.
He also questioned if the fourth property purchased by Mara in Melbourne, the 746 Swanston Street, was also overpaid compared to the market value.
On June 23, both theSun and The Age reported a group of Malaysian officials had spent funds from a government agency to purchase the Dudley House apartment block, valued at A$17.8 million (RM51.7 mil), at an “inflated” price of A$22.5 million (RM65.4 million).
On Tuesday, NOW also disclosed that Mara purchased the property in Exhibition Street for A$31 million (RM99.2 million), just six months after an unnamed company bought it for A$22 million (RM66.2 million).