KUALA LUMPUR, 26 May 2026 — The Malaysian Anti-Corruption Commission (SPRM) has concluded there are no elements of corruption, misconduct or abuse of power in the alienation of flood retention ponds to developers for residential and mixed-use projects in the Federal Territories.
This was announced today in an official media statement by Minister in the Prime Minister’s Department (Federal Territories), Hannah Yeoh, following a special briefing by SPRM to senior management of Jabatan Wilayah Persekutuan (JWP).
The investigation, launched in 2021 after widespread media reports and findings in the 2019 Auditor-General’s Report (Series 2), examined the approval process for six flood retention ponds that had been alienated by the Federal Territory Land and Mines Office (PTGWPKL).
SPRM Chief Commissioner Dato’ Sri KPj Abd Halim bin Aman led the team that presented the findings. The probe involved detailed document reviews, witness statements from developers and other parties, on-site inspections, and confirmation by a licensed surveyor that no boundary encroachments had occurred by the developers.
“Hasil siasatan SPRM mendapati tiada sebarang unsur rasuah, penyelewengan serta salah-guna kuasa ditemui di dalam proses pemberimilikan serta perintah pembangunan yang diberikan oleh Dewan Bandaraya Kuala Lumpur (DBKL) kepada Pemaju,” the statement said.
SPRM has issued a formal reminder to Dewan Bandaraya Kuala Lumpur (DBKL) to apply stricter evaluation processes for future development approvals, taking into full consideration the risks and functions of flood retention ponds.
The statement also explained the background: the ponds were originally reserved on 19 June 1998, but the gazetting process was never completed. This delay of 18 years led the Federal Territory Land Working Committee on 9 October 2015 to cancel the reservation, allowing the alienation of 80 acres for mixed development with a premium payment of RM214 million.
JWP has already established a special task force to accelerate the gazetting of remaining green spaces and flood retention ponds to prevent similar issues from recurring. DBKL has immediately halted all new planning permissions (Kebenaran Merancang) and developments in these areas.
Hannah Yeoh praised the thoroughness of SPRM’s investigation and reaffirmed JWP’s commitment to preserving open spaces and flood mitigation infrastructure for the well-being of Kuala Lumpur residents.
“This is the first consultation session between JWP and SPRM, and it will not be the last. Strategic cooperation will continue to strengthen good governance,” she said.
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