SHAH ALAM, March 20 — Selangor is refusing to return land it seized from the state Poverty Eradication Foundation (YBK) over unpaid quit rent because the arrears were cleared by a third party, Bernama Online reported today.
According to the report, Mentri Besar Tan Sri Khalid Ibrahim said the decision by Yayasan Melaka to clear YBK’s default may introduce encumbrances on the property.
“As the payee is not the land owner, we have to consider this in order to avoid complication in terms of ownership in future,” he was quoted as saying by Bernama Online.
Selangor accepted Yayasan Melaka’s payment of RM5.7 million as quit rent arrears on behalf of YBK, after refusing to do so up until late last year.
YBK ran afoul of the state government after it had failed to issue audited reports on its financial accounts and administration for the past five years as well as to report on how the money allocated for poverty eradication was spent.
It also failed to pay its quit rent for the last 13 years until August 2009, when YBK made a partial payment.
Last week, Prime Minister Datuk Seri Najib Razak asserted that the foundation’s poverty eradication efforts were being hamstrung by the state government’s refusal to return the seized land.
Selangor has also placed a caveat on another 324 ha of YBK land, barring the foundation’s access to the said property.
YBK was established in the 1990 as a non-government organisation with funding from the state. The previous administration had also transferred 33 lots totalling 876 ha to the foundation in 1994.