Selangor MB must give an explanation on the Canal City issue- Noh Omar

UMNO Selangor liason, Datuk Seri Noh Omar said the explanation was needed as there were some skepticism regarding the agreement.

He added, that there were loopholes in the agreement signed on April 15, 2013 whilst the interim government ruled.

“The agreement for the sale and purchase of the project was not supposed to happen whilst the state is being governed by a caretaker government, it was done after the state assembly seat of Selangor was dissolved on April 3, 2013.

“Other than that, when the state assembly seat was dissolved, the price of the land also raised some questions as the price stated was RM844 million for 1,172 acres or 474 hectars whilst the real price is RM1.7 billion,” he said when he met with Astro AWANI.

Noh who is also Tanjung Karang member of parliament (MP) said that according to the original agreement, Permodalan Negeri Selangor Berhad (PNSB) and MBI had sold the land to Tropicana at a value of RM1.3 billion but on the condition that Tropicana must settle the deposit of RM50 million within six months.

However, the RM537 millian will be paid with interest in 12 years and the balance of RM458.26 million is five percent from the total gross development value of land, coupled with three percent of the net profit from the project.

“Tropicana sold 308.72 acres from that land to Eco World Bhd at RM470.674 million at RM35 per quare foot. On March 26, the MB released a statement that Tropicana must pay the full price of RM844 million awhich means that the 1172 acre land is priced at RM17 a square foot,” he said.

In less than a year, the Canal City land was sold to Eco World at double the original price.