Tuesday, 3 February 2015


by : Junz Wong

ADUN LIKAS Junz Wong expressed shocking disbelief that LPPB might have entered into scandalous agreement with private contractor involving residential open space and urged Local Govt Ministry to investigate this matter seriously.


LPPB has allegedly taken the Austral Park residential open space which was included in the original approved Development Plan (DP) to secure deals with contractors.

The said lands are CL015585065 and CL015533258 measured at 4.547 hectares and 1.72 hectares respectively.

LPPB has "secretively" proposed a housing project of 36 units of semi-detached and 22 units of detached houses at the said lands without the knowledge of the residents.

On 8 Dec 2009, Rangkai Juta construction has signed RM17.6 million agreement with Magnum Setiajaya.

Only after 21 days later, LPPB signed a RM9.855 million contract with Rangkai Juta Construction on 29 Dec 2009.

Yes you didn't read it wrongly, it's on 29 DEC 2009, 21 days after!?

1) why did LPPB sign agreement with Rangkai Juta Construction knowing that there was a difference of RM7.75 million between the contract signed earlier and still allowed Rangkai Juta Construction to be the middleman and at what price? Smell corruptive rat?

2) LPPB responsibilities

In the contract, LPPB is to undertake to permit a third party charge over the said land for the purpose of obtaining the requisite bridging finance from bank.

Having perfect knowledge that the said lands belong to the residents and promise to permit third party charge is total disregard to town and planning ordinance.

LPPB also is responsible to bear and pay for enhanced premiums levied by the Government or any other relevant land authority in respect of conversion of the said land.

In my opinion, that's clearly an abuse of LPPB position in the govt getting state lands with cheap premium and entered into deals benefiting only themselves.


The Agreement signed between Rangkai Juta and Magnum Setiajaya has clearly stated that
1) Magnum had to pay RM500,000 upon execution of the agreement.

2) Magnum had to pay RM1.5million upon 14 days of execution of privatization between LPPB & Rangkai (signed on 29 Dec 2009)

3) Magnum has to pay RM1.25million upon 3 months of execution of privatization

We have strong reasons to believe that Magnum had paid substantial amount of money upfront as stipulated in the agreement thus resulting to Magnum caveating the said lands.


LPPB may claim that LPPB is owner of the said land titles. But
1) residential open space approved in the DP means that the residents have technically paid for land conversion and assessment fee.

2) Open space should be reverted back and governed under local authorities so how could the land titles be issued under LPPB ?


With these 2 grounds, Land & Survey department must explain how did LPPB get the land title for residential open space?

Junz demand land & survey to rectify this matter and assist to de-caveat & revert the land titles back for the residents.


This is TOTAL disregard to state laws and town & planning ordinance and clear ABUSE OF POWER at many levels.

LPPB chairman Datuk Rubin Balang must come clean with this deal and explain fully to the public what went on and the status of the said lands because he was the one signing the agreement on behalf of LPPB.

Rubin has 2 weeks to respond to this scandalous project dealing before DAP lodge a MACC report against him, LPPB and all involving parties. If Rubin was unable to clarify this matter he should immediately resign as LPPB chairman.


Junz Wong who is also DAP Sabah Organizing Secretary, urged Local Govt Minister Datuk Hajiji to form a special committee to look into this LPPB scandalous project land deal.


If indeed was found to be true of such scandalous deal, Local Govt and Housing Ministry must intervene, cease and stop all LPPB Joint Venture projects instantly.

Stop LPPB from joint venture projects with private developers using the cheap state lands or peoples lands to build high end homes and commercial lots.
LPPB should just focus back on building low costs housing only.

Junz urged Minister to investigate this project deal seriously as this may be only the tip of the icebergs.

We do not want to have a situation whereby all residents in Sabah have to do land search and monitoring periodically whether their open space have been used or sold without their knowledge.


Once again Junz would like to remind Datuk Hajiji on his promise to expedite the process of gazetting Town Planning Statutory plans by TYT.

The gazetted plans by TYT will not only ensure steady and stable development of KK City and other 24 districts but most importantly it will help to fight corruptions by avoiding abuse of power & govt position for hidden agenda. Junz concluded

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