A private developer would not have bought the government land in Nibong Tebal cheaply if there were problems, he said, in response to Perda chairman Shabudin Yahaya’s explanation on Friday.

“If there were indeed problems, who would buy it, let alone asking the developers to build low-cost homes? This is a profit-based company that appears to be confident it could build homes there. But how come Perda feels that the land is troublesome, and would incur losses if it carried on?” he said.

On Thursday, Lim had queried Perda’s sale of a 3.4ha plot in Kampung Tok Keramat to private developer SYT Prestige Sdn Bhd at RM1.42 million last year. The land was originally acquired by the government in 1986 at RM 1.7 million to build affordable homes.

It was learnt the company had obtained planning approval from the local authority to build homes on the site soon after.

Lim had said an Inland Revenue Board audit on the site, near MRSM Transkrian last year, showed the land was valued at RM16.6 million.

Perda chairman Shabudin had stated in response that the land was plagued with soil erosion problems, among others.

He said the RM16.6 million price tag was only an indicative price for the surrounding areas.

“We know we were supposed to get a RM15 million profit, but this amount had been distributed and will benefit some 250 house buyers in the future. If the price was that high (RM16.6 million), then we will have to build houses costing at least RM400,000 to RM500,000.”

Instead the new land owner had been required to sell affordable homes at RM42,000 to RM200,000 subject to state approval, he was reported as saying.

Shabudin had said a cost benefit analysis showed it was no longer worthy for Perda to pursue the project as it would incur losses of up to RM10 million. The site contains 107 houses already built and abandoned for the past 30 years, which must be cleared to make way for the sale.