Shafie: Dudley House deal followed procedures

(Bernama) – Mara’s controversial purchase of an apartment building in Melbourne followed procedures, according to rural development minister Mohd Shafie Apdal, whose ministry has oversight over the agency.

Shafie denied that the price of Dudley House, bought for a student hostel, had been inflated as reported by The Age newspaper earlier this week.

The Age said the price had been inflated by RM13.8 million by a group of “super-rich officials” who had taken the money for kickbacks.

Shafie said there was an agreement on record for the purchase. “And, we made the agreement, there was an agreement, if there are issues raised that the price was inflated, we have the agreement with the seller, the buyer, how much it was sold, the value, how much we paid…so, if there are allegations, if there is evidence, they can complain,” he said today.

“I would say that the facts which they had communicated were incorrect, based on what is stipulated in the agreement, what are stated in the agreement are correct, unless, there was another agreement.”

Mohd Shafie said Mara chairman Annuar Musa had stated that the purchase price was A$22 million and the current value of the building had risen to A$27 million “…so, from what we see, there were no losses, the building is ours, not anyone else’s and the profits belong to Mara,” he said.

Mohd Shafie said he would leave the matter to Mara’s management to explain based on facts.

He also defended Prime Minister Najib Razak from involvement in the purchase. “How can he be associated? He is on the economic council, the chairman, this involves several ministers…all agreed to approve it, not one person, the process is very thorough, we follow the rules,” he said.

The Age reported that a top Mara officer, a senior official and a former politician, part of “a group of super-rich Malaysian officials” had used millions in government funds to buy the building, overpaying by A$4.75 million (RM13.8 million) in 2013.

The difference was pocketed as bribes back home, The Age said.

Dudley House, a five-storey building, accommodates 115 Mara students studying at Monash University.