SHAH ALAM: Lopsided agreements in joint venture real estate projects under the previous state government led to losses of about RM30bil in revenue over the last 30 years, claimed Selangor Mentri Besar Tan Sri Khalid Ibrahim.
“Companies enjoyed a much larger share of the profits under a 70:30 deal despite being awarded the land for free under these joint ventures with the then Barisan Nasional-led state government.
“The state government could have made seven to eight times more if it had sold the land, or carried out housing development projects on its own,” he said when tabling the 2009 state budget at the state assembly here on Monday.
For instance, Khalid said the Canal City joint-venture project awarded about 810ha of land to a private company with estimated returns of only RM22mil for the state over a period of more than five years.
The land involved was estimated to be worth RM170mil if it was sold to a private developer, he said.
Khalid said the Pakatan Rakyat-led state government had decided it would not enter any more venture agreements of such nature.