Malaysia

KBDC dodges questions on chairman’s possible bankruptcy

Federal Territories Pejuang to lodge MACC report tomorrow, urging authorities to investigate corporation’s conduct

Updated 4 years ago · Published on 15 Jun 2022 6:38PM

KBDC dodges questions on chairman’s possible bankruptcy
The Kg Baru Development Corporation’s integrity is under the spotlight following allegations its chairman Datuk Affendi Zahari was declared bankrupt by the Shah Alam High Court in October last year. – Wilayahku.com pic, June 15, 2022

KUALA LUMPUR – The Kg Baru Development Corporation (KBDC) has brushed aside rumours concerning its chairman’s alleged bankruptcy case, claiming that such matters are not relevant to the ongoing development project in Kg Sg Baru.

The integrity of the corporation had previously come under the spotlight following allegations that chairman Datuk Affendi Zahari was declared bankrupt by the Shah Alam High Court in October last year.

“Regarding the status of KBDC’s chairman which has been raised, the issue has nothing to do with the redevelopment of (Kg) Sg Baru,” the corporation said in a statement today.

It added, however, that relevant checks will be made accordingly by the Federal Territories Ministry.

Federal Territories Pejuang chief Datuk Seri Khairuddin Abu Hassan has also lambasted the corporation for its apparent favouring of property developers Ritzy Gloss Sdn Bhd over Kg Sg Baru residents, calling on the government to explain the situation.

“Why is the government allowing a bankrupt person to continue holding the position of KBDC chairman and handle Kg Sg Baru cases?” he questioned in a statement today.

“Affendi’s attitude is very suspicious and it is likely that someone with such problems will take advantage of the situation for his own personal gain to solve his problems.”

His sentiments echo those expressed by former federal territories minister Khalid Samad, who had first voiced the issue of Affendi’s alleged bankruptcy during a press conference on Sunday.

He claimed that KBDC had acted improperly by representing Ritzy Gloss, which is eyeing the Kg Sg Baru area for a redevelopment project, during an engagement session with residents on June 7. 

The Amanah lawmaker also implied that Affendi’s supposed bankruptcy has influenced the corporation’s conduct, questioning: “Is he (Affendi) in a desperate situation because of his financial situation?”

The Vibes has attempted to reach out to Affendi, who is also Umno’s Titiwangsa division chief, for comment but has yet to receive a response.

Checks by The Vibes revealed an Insolvency Department document where an individual named “Affendi bin Zahari” had received a bankruptcy order on October 11.

An Insolvency Department document states that an individual named ‘Affendi bin Zahari’ received a bankruptcy order on October 11. – The Vibes pic, June 15, 2022
An Insolvency Department document states that an individual named ‘Affendi bin Zahari’ received a bankruptcy order on October 11. – The Vibes pic, June 15, 2022

According to Section 10(c) of the KBDC Act 2011, an officer within the corporation must be vacated if he is found to be bankrupt.

In light of the rumours, Pejuang will be filing a report to the Malaysian Anti-Corruption Commission (MACC) tomorrow, urging the agency to look into how Kg Sg Baru residents have possibly been wronged by the very people tasked with protecting their interests.

The KBDC is an agency tasked with the responsibility over the development planning in the historic Malay enclave around Kg Baru, in line with the KBDC Act 2011, which mandates the “implementing of policies, directives and strategies for the development of Kg Baru”.

Situated near the iconic Saloma Link, Kg Sg Baru consists of seven blocks of low-cost flats and 98 terrace houses that sit on 5.23ha of leasehold, non-Malay Agricultural Settlement land.

In 2016, Ritzy Gloss entered into a memorandum of understanding with the Kg Sg Baru Landowners’ Welfare Association to develop the area through joint venture agreements.

However, some locals have objected to the project and accused the association of not representing the interests of the majority.

Yesterday, the association’s chairman Zulfakar Wahid urged the remaining residents in his former neighbourhood to accept the deal offered by Ritzy Gloss.

He alleged that residents who refuse to let go of their land titles are being “selfish and greedy.” – The Vibes, June 15, 2022

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