Friday, September 7, 2012

Goverment’s valuation ‘too conservative’

By Leven Woon. Published by Free Malaysia Today on 7 September 2012.

Upset Pengerang landowners will engage a surveyor to revalue their properties following the state government's shocking compensation of RM2.50 per sq ft.


An independent surveyor has backed Pengerang residents in their demand for higher compensation for their demolition-bound homes. According to a land surveying firm director Tan Beng Sooi, the valuations offered by the authorities – RM2.50 and RM4.50 per sq foot – were too conservative. He said the figures did not reflect the full potential of the land.

“It is very low, and to my understanding, the valuation was done before October 2011. They did not take into account the current market value,” said the Johor-Baru based surveyor. More than 50 residents from Kampung Sungai Kapal, Kampung Jawa and Kampung Teluk Empang were the first batch of some 30,000 affected people to receive the land valuation offer.

The offer was made to them at a public hearing in Desaru on Monday. It was the first time they were told about the price offered. Their properties are to be acquired for the contentious RM60 billion Refinery and Petrochemical Integrated Development (RAPID), a project spearheaded by Petronas.

Fuming at the shockingly cheap offer, the residents said they would engage a lawyer and surveyor to revalue their properties. Tan, in a valuation report done for Pengerang earlier this year, had pointed out that the properties should be priced between RM12 per sq ft and RM15 per sq ft.

Six weeks to decide

When contacted yesterday, he expressed surprise at the figures offered by the Johor government and district land office. “Earlier this year there was a bungalow sold at RM40 per sq ft in Taman Rengit, Kampung Sungai Kapal,” he said. Tan doubted if the authorities had taken into account the villagers who operate fish farms in the areas, who would suffer a loss of income once they are relocated.

“What about the temples and places of worship? Have they drawn a new site for relocation?” he asked. He added that the authorities should not have begun the public hearing only now, since they planned to complete the entire relocation process by April next year. The residents are given six weeks from the day they receive the offer to make a decision.

The Johor government is planning to acquire some 8,094ha of land in Pengerang for the development of the Pengerang Integrated Petroleum Complex (PIPC). About 2,550ha will be developed by Petronas RAPID, while 544ha will be for the Pengerang Independent Deepwater Petroleum Terminal.

(Photo courtesy of Kampungku, Suaraku facebook page.)

Related report:
Villagers affected by the land acquisition process in Pengerang will receive their compensation in cash within 14 days, following their acceptance of the award. The assurance given by the state government is for the ongoing public hearing on land acquisition award that started September 3 this year, for villagers whose land were affected by the RAPID project located within the Pengerang Integrated Petroleum Complex (PIPC).

Johor Mentri Besar Datuk Abdul Ghani Othman, in a statement today, said the first phase of the public hearing from September 3-14 will enable three villagers affected to state their case on government compensation for their acquired land and properties.

The three villagers affected are part of Kampung Sungai Kapal, Kampung Teluk Empang and Kampung Langkah Baik, he said. The public hearing implementation according to him was based on Land Acquisition Act 1960 and the affected villagers need not worry about their rights because it would be done according to provisions of the act.

“The compensation offered will be based on valuations conducted by the Valuation and Property Service Department based on prevailing market prices at the time before section 4 was gazetted. It will not be arbitrarily decided by the state government,” said Abdul Ghani. — Bernama

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