PETALING JAYA (Dec 21): The Kelantan government today clarified that the plantation land in Gua Musang managed by Upayapadu Plantations Sdn Bhd - a company linked to Perak DAP chief Datuk Ngeh Koo Ham - has only been leased to the company.

The claim by the pro-Barisan Nasional blog 'pisau.net' that they the company was awarded 10,526 acres of land allegedly worth over RM30 million is baseless, said the Kelantan Menteri Besar's press secretary, Ahmad Fadhli Shaari.

"The land was only leased out, no ownership title was issued. And the lease period is only 50 years," he said in a statement, published by PAS organ Harakahdaily.

Ahmad Fadhli said he was asked to make the clarification by Menteri Besar Datuk Nik Abdul Aziz Nik Mat after a posting in the blog alleged that Nik Aziz had awarded the land to Ngeh and Perak DAP secretary Nga Kor Ming as a deal to allow PAS' Datuk Mohammad Nizar Jamaluddin to be appointed as Perak menteri besar after the 2008 general election.

Ahmad Fadhli said the Kelantan state executive council had on Sept 13, 2000 agreed to grant the land to the Kelantan Islamic Foundation (YIK) to help finance the cost of educating pupils at YIK schools.

A joint-venture between YIK and a private company, entered into that same year, to develop the land was terminated in 2004 after it proved to be unsuccessful.

"The offer to Upayapadu (then chaired by Dato Seri Wong Yeon Chai) was made through a YIK letter dated Aug 28, 2005 while the agreement was signed on May 3, 2006 - nearly two years before the 2008 general election was held," said Ahmad Fadhli.

Under the agreement, YIK was to be paid RM100 per acre for the area planted with rubber, and RM150 per acre for oil palm land.

"YIK was informed of a change in the composition of directors and shareholders in May 2012, whereby as a result of the change, the company was required to pay RM1.5 million to YIK," he added.

Ngeh and Nga have neither confirmed or denied that they are directors of Upayapadu as alleged in the 'pisau-net' blog posting.

Ahmad Fadhli said there is a strong likelihood of Nik Aziz filing a suit over the allegation.

Nik Aziz himself, meanwhile, was quoted by Sinar Harian today as saying that the allegation was slanderous and that he has asked his officers to consider taking the matter to court.

"I have read reports in the press about the allegations made about me about land corruption. This is defamation," he said.