AG'S Report: DBKL asked to sell land via auctions

KUALA LUMPUR: The National Audit Department has urged Kuala Lumpur City Hall (DBKL) to sell land belonging to it through auctions so as to get the best price for its Federal Territory Affordable Homes projects (RUMAWIP).
According to the Auditor-General's Report 2016 Series 2 which was issued today, the department also recommended that the Federal Territories Ministry provide guidelines and draw up work procedures on the sale of land through auctions, the method for selecting developers, monitoring of developers in terms of eligible applicants and data management in its portal as a guide.
At the same time, the report also urged DBKL to take stern action against developers who failed to carry out their obligations, including fulfilling the terms of the agreement, by withdrawing the offer or blacklisting the developer.
These recommendations were made after the department found that DBKL had disposed off its lands through outright sales to new developers, or those who were dormant, had unstable capital standing and were inexperienced.
It also involved the sale of land to unauthorised parties which exposed DBKL to the risk of late delivery and failure in meeting the objectives of the project.
The report also stated that there was no evidence to show that the assessment of the land was based on the sale value of the Desa Satumas Residency project to the developer Garuda Searah Sdn Bhd (GSSB) before the price was set at RM493 million.
The audit also found that there was no proper documentation for the granting of 100% exemption for the development charge for the Gurneymas Residency Project, as set in the Federal Territory of Kuala Lumpur (Planning) (Development Charge) Rules 2013.
The audit exercise also found that the interest for late payment was not stated in the offer letter for the sale of Lot 11590 land to the development, which was a negligent act resulting in DBKL not collecting late payment interest amounting to RM493,046. — Bernama