By Norrasyidah Arshad
SHAH ALAM, Feb 19 — Law firms have been identified as entities directly involved in a land misappropriation scandal that caused the Selangor government losses exceeding RM7 million.
Menteri Besar Dato’ Seri Amirudin Shari revealed that these firms played a key role in fraudulent transactions by manipulating land titles.
“This is not the work of a single individual. There is a network, with connections across several departments and even external institutions, that enabled the process.
“Investigations have shown that this did not happen only within the District and Land Offices. Law firms were involved, and they were directly embedded in the system as they could make key amendments at certain stages.
“These firms, responsible for handling land transactions, inevitably became part of the scheme. So far, we have identified a law firm and officers from the relevant (land) office,” he told the Selangor State Legislative Assembly today.
Amirudin said the state government is actively addressing the issue, as the fraud has led to risks, including high compensation claims and financial losses.
He warned the situation could worsen if land fraud involved ongoing transactions, prompting the state to take preemptive measures, including placing caveats on affected land.
“That’s why we placed the caveats early. If developers apply for planning permission only to discover irregularities later, the impact would be even more severe, with higher compensation and damage claims.
“This is a blatant act of fraud that affects state revenue and the public interest for personal gain. We are prioritising resolving this issue first and then finding replacement land, subject to mutual agreement,” he said.
Amirudin attributed the fraud to weaknesses in the manual land administration system, which allowed name transfers before the introduction of the e-Tanah system.
“Last year, we identified at least three cases. With e-Tanah, we can better control access and approvals.
“Some of those involved have already passed away or retired, but for now, we are lodging police reports and taking the necessary action,” he said.
Yesterday, Sultan of Selangor Sultan Sharafuddin Idris Shah Alhaj issued a stern warning against cartel activities and business licence fraud, stressing that such misconduct must not be allowed to continue.
His Royal Highness urged state government officers and civil servants, particularly those in local authorities, to uphold integrity and prevent corruption.
The Selangor Ruler also reminded department heads to ensure abuses of power does not occur under their watch.