In a Nov 11 written reply to the Dewan Rakyat, Prime Minister Najib Razak justified the rental amount, saying it was the going rate in Kuantan for a commercial property.
Najib, who is also finance minister, said the rental amount was based on the assessment carried out by the valuation and property services department.
He was responding to a question from Fuziah Salleh (PKR-Kuantan), who had asked why the IRB was paying RM680,000 per month for the rental of the premises located on Jalan Tanah Putih in the state capital.
Though no specific amount was mentioned in the written reply, the finance minister neither confirmed nor denied the RM680,000 figure stated in Fuziah’s question.
She had also asked the rationale for paying a private company, CDO Resources Sdn Bhd, the rental which amounts to RM8.16 million per year, instead of renting property from a government-linked company or a state-owned firm.
The IRB occupies 10 out of the 13 floors in the building, which also has two floors of underground parking.
Aside from the state IRB headquarters, the Kuantan IRB office is also located in the same building.
According to Najib, IRB has 260 officers as well as contractual and part-time staff on duty at the premises “to facilitate a more conducive environment to assist IRB clients”.
“The rental amount covers the actual office space as well as furniture, fixtures, fire insurance and overall maintenance fees for the building.
“Aside from the above, it covers the parking facilities, quit rent, property tax as well as safety and IT systems that are provided for the benefit of the tenants,” he said.