KUALA LUMPUR (Aug 4): Berjaya Land Bhd (BLand) lambasted caretaker Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor's recent remarks on the Selangor Maritime Gateway (SMG) project, saying it will be lodging a police report and pursuing legal action over the matter.

In a statement on Friday (Aug 4), BLand said Sanusi made false and unsubstantiated allegations about the project, which involves the rehabilitation of the Klang River, during a speech at a public event on Wednesday.

"BLand believes that the MB’s speech was politically motivated, is slanderous and designed to put both BLand and the Selangor state government in a bad light by implying questionable dealings by both parties in relation to the SMG project," the company said in a statement filed with Bursa Malaysia.

“The spurious allegations made by Muhammad Sanusi are clearly entirely baseless and without any verification as to its veracity," said Bland group chief executive officer Syed Ali Shahul Hameed. "These statements were made recklessly and maliciously and are evidently intended to tarnish BLand’s reputation and undermine our commitment as well as that of the state government to the betterment of Selangor state and its people."

“I would also add that we are taking immediate action by lodging a police report and pursuing legal measures to protect our rights in this matter,” Syed Ali added.

Referring to Sanusi's allegation that Menteri Besar Selangor Incorporated (MBI) had sold a 55% stake in its wholly-owned subsidiary to BLand and/or its related company, BLand said there was no such sale.

The company explained that a special purpose vehicle through a joint venture between MBI’s subsidiary, Landasan Lumayan Sdn Bhd (45%), and Berjaya Hartanah Bhd (55%) called Landasan Lumayan Berjaya Sdn Bhd (LLBSB) was formed to, among others, clean and develop the Klang River.

"LLBSB employs property development, with a specific focus on affordable housing projects, as a means to generate revenue to fund and sustain these vital river-cleaning initiatives under the SMG project," it added.

BLand noted that the SMG project initiative was recognised by the Green World Awards 2023 for its efforts in cleaning the Klang River, adding that the project is deemed successful in improving water quality of the river "from class 4 to class 2 now".

On Sanusi's accusation that BLand or its related companies were given 600 acres of Selangor state land worth RM10 billion for free, BLand said: “In actual fact, only several parcels of land totaling 103.6 acres [were] identified as feasible for development and granted approval for alienation to LLBSB by the state government."

Selangor did not incur RM180 million in losses from the land given for “free”, added BLand.

BLand also said that the company is the party that is required to raise funds to pay the premium for the alienation of the land to LLBSB based on market rate.

"The joint venture company is to pay a total of RM113.1 million in premiums at current market rate valued by the government valuer, Valuation and Property Services Department, for the 103.6 acres of alienated land," said BLand, adding that BLand or its related companies will raise the funds required for LLBSB to pay the the sum.

BLand's share price closed up 0.5 sen or 1.85% at 27.5 sen, valuing the group at RM1.38 billion.