The Muhyiddin-Stamford Land Conspiracy Matter

(Just in case you thought No.2 is squeaky clean)

T HE following are excerpts from

various reports about a matter heard
in the mid- 90s, in which Tan Sri
Muhyiddin Yassin and others were sued by property
developer Stamford Holdings S/B: Stamford
joint venture to develop
some 724 hectares of
land. When the property
was sold in 1994, the
Muhyiddin group's initial
Holdings Sdn. Bhd. has sued Muhyiddin Yassin, chief investment of M$1.8
minister of the Johor state, and businessmen Yahya million ($735,000) had
Talib and Syed Mokhtar Albukhary for damages for soared to M$83 million.
alleged conspiracy in acquiring land in Johor through In the meantime,
the Land Acquisition Act, the Bernama national news Muhyiddin's group had
agency reported Friday.
become "very avaricious," according to the
According to Bernama, Stamford Holdings claimed documents Stamford filed in court,
the three had abused provisions of the Act to and wanted to form a second joint venture in which
acquire its 6,600 acres of land through the Johor they would control 70% of the shares but would pay
State Islamic Economic Development Corporation. Stamford only M$74,100 per hectare for its
remaining 2,672 hectares, company officials charge.
The suit was filed at the Kuala Lumpur High Court
early this month but was transferred Friday to the When Stamford insisted on retaining its original
Johor Baru High Court, Bernama said. Stamford 70% and on being paid M$185,250 per hectare for
Holdings also named the Johor state government as its property, one of Muhyiddin's associates allegedly
a defendant in the suit, alleging that Muhyiddin and warned the company that the land-acquisition
the two businessmen conspired to use the state papers were on the former chief minister's desk and
government's authority to acquire the land. could be "signed at any time." Muhyiddin himself
allegedly threatened Stamford in December 1992 by
According to the news report, Stamford Holdings telling one of its directors that "time is getting
wants the court to declare that the Johor State short." In July 1994, the state government acquired
Islamic Economic Development Corporation was not the land on behalf of the Johor Islamic
entitled to invoke provisions of the Land Acquisition
Act to acquire a private landed property. Economic Development Corp. (MALAYSIA
--- The Privileged Few
(Malaysia's Stamford Sues Minister, By Murray Hiebert in Kuala Lumpur, 6 July 1995,Far
Businessmen - Report Eastern Economic Review)
17 February 1995)
The facts of the matter as reported by Raphael
The facts of the matter as reported by Murray Pura , AWSJ : In 1984, Stamford -- which is 90%
Hiebert , FEER: Stamford's court documents insist owned by three families, the Singapore-based Seet
that the company's relationship with the former family, and the Gan and Wang families from
chief minister dates back to 1988. Four years earlier, Malaysia -- applied to the Johor government for
the firm had tried to develop some of its huge land permission to develop a light industrial estate on
holdings near the state capital of Johor Baru. But part of the land. Stamford, in its suit, claims nothing
Stamford couldn't get approval for its project until happened until 1988. Then, Stamford directors met
its directors met two men who were allegedly businessmen Syed Mokhtar and Datuk Yahaya, who
Muhyiddin's business partners, Syed Mokhtar said they were Tan Sri Muhyiddin's "close friends
Albukhary and Datuk Yahaya Tabib. and business associates," according to the Stamford
suit.
The two arranged a meeting in Singapore between
the firm's representatives and the former chief According to Stamford's court submission, the
minister, the firm's documents allege. Within a year, company in late 1989 agreed with Syed Mokhtar and
Stamford and the three men had formed a 70-30 Datuk Yahaya, "acting for themselves and [Tan Sri

The Muhyiddin-Stamford Land Conspiracy Matter 1/2

Muhyiddin]," to create a joint-venture company to Under the settlement, the Johor government is to
develop 1,766 acres of Stamford's property. The pay the plaintiff RM313.25 million while Kelana
Johor trio, led by Syed Mokhtar, invested 1.8 million Ventures Sdn Bhd was ordered to pay RM92.12
ringgit in the joint venture, taking 30% of its equity; million. Datuk V. Sivaparanjothi and Manjit Singh
Stamford held the remainder. The joint-venture appeared for the plaintiff while Datuk Abdul Aziz
company acquired the property from Stamford and Abdul Rahim appeared for the Johor State
submitted a fresh application to convert it to Government, Johor Baru Land Administrator and
industrial use. The Johor government then approved former Mentri Besar Tan Sri Muhyiddin Yassin. Roger
the conversion "speedily," Stamford says in its suit Tan Kor Mee appeared for Perbadanan Kemajuan
in which it also alleges that the Mokhtar group Ekonomi Islam Negeri Johor
"made a clean profit of 83.2 million."
The judge further ordered that all the civil suits, civil
According to Stamford, the Mokhtar group in 1992 appeals and miscellaneous civil applications by the
approached Stamford's directors, proposing to plaintiff be settled and disposed of. The
develop the remaining 6,520 acres of Stamford's compensation sum of RM313.25 million is to be
Johor property. This time, Stamford alleges, the deposited in the High Court by or on behalf of the
group insisted on taking a 70% equity stake in a Land Administrator to be paid out to Stamford. The
new joint venture and proposed that Stamford's additional sum of RM92.11 million is to be paid to
land be sold to the venture at 30,000 ringgit an Stamford by Kelana Ventures, which is one of the
acre. Stamford protested that it wanted to hold 70% interveners/defendants in the case. The payment is
of the venture and should be paid more than twice to be made in settlement of the compulsory
that price for the land. (Malaysian Company acquisition of the Stamford properties by the Land
Continues Suit Challenging State Acquisition of Administrator on behalf of Kelana Ventures before
Land| By Raphael Pura - Staff Reporter of The Wall the expiry of 18 months from the date of the
Street Journal | 16 June 1995,The Wall Street consent order.
Journal)
The dispute between Stamford and the defendants
The case concluded in an out of court settlement involved the whole of the Stamford properties in the
The land acquisition civil suit filed by a firm against mukim of Tebrau, Johor Baru District and involved a
the Johor government and several other parties was total of 6,544.4172 acres which were compulsorily
settled today for a total of RM405 million. The High acquired.
Court ordered Stamford Holdings Sdn Bhd to be paid
the amount for the acquisition of 6,544 acres of land Johor govt, parties to pay the sum for land
belonging to it. compulsorily acquired. s (Land case settled for
RM405m. By JOTHI JEYASINGAM ,7 October 1999
The consent order was given by Justice Zainun Ali in The Sun)
chambers. +++---ku2009/3/31 Dina Zama

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