In a statement, it said Section 14 of the Malaysian Rubber Board (Incorporation) Act 1996 (Act 551) stated that MRB was accountable to the minister and that the board must comply with any instructions given by the minister.
This meant that there was no issue of interference by the minister since he was given such powers under Act 551, it said.
MRB added that the board will not hesitate to take legal action on allegations by former chairman Ahmad Nazlan Idris over his claims against Khairuddin.
On Monday, Nazlan, an Umno MP, claimed that Khairuddin “interfered and allowed LGMPC to run as usual” despite MRB forming three task forces to improve the running of LGM Properties Corporation (LGMPC), a corporation owned by the board.
The Jerantut MP also said MRB only agreed for a period of 5+10 years for the leasing of Lot 20013 at 70 sen per sq ft, but the minister wanted 5+10+10, making it 25 years.
MRB said the three task forces formed in September last year were meant to propose steps to improve the running of LGMPC. A new LGMPC CEO was then appointed on Jan 25 and given the mandate to restructure its operations.
This was aimed at addressing the corporation’s failures in governance and to boost its performance, which had been less than impressive, it said.
It reiterated that no lease agreement nor sale and purchase transaction had been signed with any party on the two parcels of land.
While confirming that Khairuddin had instructed for the lease of Lot 20013 to be extended by 10 more years and for it to be reopened for Request For Proposal (RFP) to the companies involved in the tendering process, it maintained that no final decision had been made.
There have been allegations that Khairuddin approved the lease of two plots of land at Jalan Ampang, Kuala Lumpur owned by MRB, below the market rate. The minister has since lodged a police report over these allegations.
An NGO alleged that Khairuddin approved the lease for Lot 20013 to Al-Noor Foundation at a price of 70 sen per sq ft, compared with the market price of RM2.50, for a period of 15+10 years with a 10% lease rate increase every five years.
The NGO also claimed that Lot 20012, with an area of 8.89 acres, was proposed to be sold to Eurowhite Sdn Bhd at a price of RM1,032.92 per sq ft, which is said to be below the market price of about RM1,400 per sq ft.