Zahid’s family link in massive KL project with RM1.2 billion value

While top Umno leaders face hundreds of corruption charges among them, the prospect of years behind bars has not stopped lucrative business deals from being inked by individuals closely related to them, MalaysiaNow can reveal.

In one such deal, a project in the heart of Kuala Lumpur with a gross development value (GDV) of RM1.2 billion is set to take off involving several firms linked to Umno president Ahmad Zahid Hamidi, who has been ordered to enter his defence for 47 corruption charges related to RM31 million in funds belonging to a charity foundation.

The massive project to redevelop the site of Flat PKNS Jalan Tun Razak in Kampung Baru will be undertaken by Jiankun International Bhd, which has entered into a joint venture agreement with Menara Rezeki Sdn Bhd (MRSB) and Menara Rezeki Properties Sdn Bhd (MRPSB).

The project will see the construction of several skyscrapers, including a 52-storey apartment tower in Jalan Tun Razak, among the capital city’s most prized real estate plots.

All three companies have links to Saiful Nizam Mohd Yusoff, the son-in-law of Zahid.

Checks by MalaysiaNow show that Saiful has been an independent non-executive director of Jiankun since April 1 last year.

A Bursa Malaysia announcement also shows that Saiful, who is the managing director of MRSB, holds 99.999% stakes in the company as well as in MRPSB, through the ownership of 6,999,999 and 999,999 stock units respectively.

Meanwhile, Zahid’s daughter Nurulhidayah Ahmad Zahid has been the executive director of MRSB since May 2017, according to her LinkedIn profile.

Beyond the family connections, questions have also been raised over the GDV totalling RM1.2 billion, about 27 times more than Jiankun’s stocks valued at RM43.8 million as at Jan 31, 2022.

The redevelopment of the Flat PKNS site is said to be Jiankun’s biggest real estate project so far.

According to a Bursa filing by Jiankun, the company will take 70% of the profits from the project, with the balance going to MRSB.

It said the project’s funding will be through “a combination of internally generated funds, equity fund raising, sales of development and bank borrowings”.

“The exact combination of internally generated funds, equity fund raising, sales of development and bank borrowings will be determined by the management at a later stage, after taking into consideration the group’s gearing level, interest cost and internal cash requirements for its business operation,” it said.

The 3.7-acre site is occupied by 11 leasehold lots, seven of which are currently occupied by 252 flats with individual strata titles.

Three lots belong to Kuala Lumpur City Hall, and the remainder is owned by the Federal Territory Islamic Religious Council.