Is Petronas Dagangan (also) above the law?
Is this what we should expect of good corporate governance of a GLC and public-listed company?
Petronas Dagangan (Code: PETDAG (5681) on Bursa Malaysia) has been found operating a commercial petrol station and a convenient shop on a plot of agriculture land in Sungai Buloh for the last 23 years.
The lease is for 30 years, starting in 1984 and ending in 2014.
But the problem is: The land on which the Petronas petrol station stands is NOT meant for commercial activities, but de jure and de facto agricultural land.
According to an extract of land search taken at the Pejabat Tanah dan Galian Selangor last Friday, (October 19, 2007), the quit rent (cukai tanah) levied on the said piece of land is RM14.00 per year.
It means that Petronas Dagangan, which transacts commercial activities at the fuel retail outlet, has been paying a quit rent that is far lower than a residential house -- for the last 23 years!
(Look, even Dr Mahathir was Prime Minister for only 22 years!)
Official documents clearly state that the land in question -- located on Lot 4087 (GRN 18602) in Mukim Sungai Buloh, Petaling District, Selangor and sized 0.4048 hectare -- has been leased to Petronas Dagangan Sdn Bhd for 30 years, with effect from July 1, 2984 through June 30, 2014.
The status of the plot of land has remained, to date, agriculture land.
The local government that governs Sungai Buloh, the Shah Alam municipal council (now upgraded as a city council), must answer the question: Why was certificate of fitness for occupancy -- and with that, the approval for electricity and water connection, and endorsement from the Bomba and the whole works -- issued to a commercial holding sitting on agriculture land?
Petronas Dagangan claimed to have over 500 petrol stations around the country, to date. Is this an isolated case or are there similar irregularities hidden somewhere, unreported?
How can we be sure? How can Petronas' global partners, who demand transparency and accountability, be 100% sure?
This is the Google Earth capture of the petrol station sent by a Screenshots reader who read the Malaysiakini reports, here and here, yesterday.
The large format of the land search report is available here and here. Details in my other blog on parliamentary governance.
Comments
the chances are petronas dagangan applied for land status change but shah alam council KIV'd the file.
Look at the google map. The whole area at one time must have bee agriculture, but was altered to residential/commercial by developers. Petronas dagangan should have hired a runner to sort out this mess.
Posted by: sydput![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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October 23, 2007 01:14 PM
Jeff, the picture speaks for itself! I would give the benefit of the doubt to Petronas in this case. Questioning PDB in the manner you have in this case...a little distasteful la... cheers
Posted by: Habib![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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October 23, 2007 01:46 PM
Still Petronas Dagangan should not have gone ahead without first converting the land status to commercial.
Looks like another coverup in the fold?
Posted by: merdeka![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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October 23, 2007 06:59 PM
Goodness gracious, to call this another example of a coverup smacks of a conspiracy theory. The lease was given out 20+ years ago, for all you know a status change was already requested and the council misplaced or forgot about it. If its such a big issue, I'm sure PDB wouldn't mind paying any arrears in taxes over the period.
Posted by: alfabob![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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October 23, 2007 08:37 PM
On the other hand, how can the council approve the construction of the petrol station when the land is for agriculture?
Posted by: freewave![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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October 23, 2007 08:55 PM
I agree with Sydput, there have been numerous cases where the Pejabat Tanah did not update their files properly. Its a giant can of worm for the whole of Malaysia I would say if one goes into Pejabat Tanah.
Posted by: holiday![[TypeKey Profile Page]](http://www.jeffooi.com/nav-commenters.gif)
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October 23, 2007 09:59 PM