PAC confirms arrest of Felcra official is related to Menara Semarak 20 project

The arrest of a Felcra official last month is in relations to the troubled Menara Semarak 20 project, confirmed the Public Accounts Committee (PAC).

PAC member Zahir Hassan (PH-Wangsa Maju) explained that the arrest was the result of the hardwork of the Malaysian Anti Corruption Commission.

“They had found out how the management of the Semarak 20 project was run. Initially it was meant to be ‘design, build and finance’ but along the way it changed to design and build without finance,” he said.

Semarak 20 is a mixed development project located in Jalan Semarak. It involves Menara Felcra, 43-floors of condominium, a shopping mall and an international convention centre that was launched on December 2017 and was halted when Felcra underwent financial crisis.

PAC probed Felcra Berhad as stated in the National Audit Report 2021 which stated that the agency had unresolved debt of RM312.22 million as of end of 2021 which is a hike of RM82 million compared to the previous year. Felcra also owed the government RM3.67 billion.

The federal government also did not receive dividend from Felcra from 2019 to 2021.

The debt was subsequently converted from government loan to equity.

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