An external audit firm has been appointed by the Prime Minister's Department (PMO) to conduct a forensic audit on the Kuala Lumpur Vertical City (KLVC) project being developed by Synergy Promenade Sdn Bhd (SPSB) on land belonging to the Federal Land Development Authority (Felda), said Prime Minister Najib Abdul Razak.

He said the firm would conduct a forensic audit of all activities, decisions and actions relating to the project.

"It will also re-evaluate the relevant regulatory processes, including weaknesses in the internal administration as well as Felda's supervision of Felda Investment Corporation Sdn Bhd (FIC).

"The audit firm’s investigation will also encompass the Federal Territory of Kuala Lumpur Land and Mines Office and Kuala Lumpur City Hall," Najib said in a statement today.

The media had reported on Dec 21 last year that Felda was at risk of losing ownership of a strategic piece of land in Jalan Semarak, Kuala Lumpur, estimated to be worth RM200 million, when it was believed to have been transferred through a ‘dubious deal’ in 2015.

The land transfer was believed to have occurred when FIC appointed a local company as the primary developer on June 3, 2014, and it was given full power of attorney to develop the land.

In the statement today, the PM said the audit firm's investigation was expected to be completed within 30 days, and a full report would be submitted to the PMO.

Najib said the appointment of the audit firm was made following his directive to Felda in a letter dated Dec 11, 2017, to determine whether there was non-compliance with existing procedures or there were elements of abuse of power and corruption pertaining to the KLVC project.

"In the letter sent by the JPM to Felda chairman Shahrir Abdul Samad, I also directed Felda to lodge a police report against SPSB for criminal fraud and take legal action for civil fraud for the transfer of Felda property rights without knowledge and permission,” he said, adding that the directive was issued to safeguard the interests of Felda and its settlers as well as to ensure that the land remained with Felda.

Najib said the police had also conducted an investigation and a caveat had been placed on the land in question.

“As such, reports saying that the land has been lost are incorrect. The registrar's caveat on the land will ensure that Felda's interests are safeguarded," he said.

Najib said legal action would be taken if investigations by the external audit firm and police indicated wrongdoing by those involved in the project which was agreed upon in 2014.

- Bernama