Release Date : 18 October 2010

This press statement is in response to the recent various news reports pertaining to land acquisition within Bako Peninsula.

As a developing State, compulsory land acquisition cannot be avoided to enable the implementation of development projects. The Sarawak Land Code (Cap. 81) stipulates the legal process of acquiring land through compulsory land acquisition and also has a clear and adequate provisions to respect and protect the rights of landowners in respect of land acquisition.

Section 47 of the Land Code is invoked to initiate land acquisition process. The imposition of section 47 of the Land Code indicates that the affected lands are likely to be needed for implementation of development projects for public purposes. Section 47 authorizes the Government or its agents to enter upon the land for purpose of preliminary surveys and investigations on its suitability. Section 48 will be imposed once the land and area affected by the project is finalized, after which notices calling for land acquisition Inquiry would be issued pursuant to section 49 of the same Land Code.

Land acquisition Inquiry is a legal process where the Superintendent shall have the same powers, privileges and immunities as may be enjoyed by a Magistrate in civil proceedings, inquired into three matters, namely area of land to be acquired, quantum of compensation and apportionment of compensation. Award or decision of the Inquiry will be issued once matters raised at the Inquiry had been decided and dealt with. For example, matters concerning rates of compensation will be decided with reference to the directions contained in section 60 (i.e. matters to be considered in determining compensation) and section 61. (i.e. on matters to be disregarded in determining compensation).

It is also provided under the Law that once Award is issued by the Superintendent, any landowner who disagrees with the Award has the right to appeal to the Court for determination. The government will abide by the decision of the Court.

Land acquisition Inquiry is not merely an administrative action or an effort to test the water or testing the response from the land owner as alleged. Land acquisition Inquiry is held pursuant to the requirement of the Law, where landowners have the rights to raise questions to the Superintendent on matters concerning area of land to be acquired, the amount of compensation and the apportionment of compensation.

The land Inquiry in 2010 for those parcels of land affected by the compulsory acquisition within Bako Peninsula has been fixed to commence from 4th October 2010 until 1st November 2010. As the Superintendent was required to perform official duty in Kuala Lumpur on the 11th to 12th of October, Inquiry on such dates had to be postponed. As a matter of fact, Inquiry had resumed on the 13th October onwards. Land owners affected by the postponement were duly notified by the department.

Land acquisition within Bako Peninsula affects land subject to section 47 of the Land Code notice. There are also land which are not subject to section 47 notice.

For the purpose of assessing the quantum of compensation, it is stipulated under section 60(1)(a) of the Land Code that the date of valuation is the date of imposition of section 47 or section 48 of the Land Code, whichever is earlier. The quantum of compensation as reported in the media is only partially correct. However, the Department is of the view that the media is not an appropriate forum to discuss on the details of the compensation as the details will be revealed to the respective landowners during the Land Inquiry.

 The method of assessing compensation is also clearly stipulated under the Law. The quantum of compensation is determined through the Comparable Method of Valuation. It is the main method for valuing land where evidence of sales of land transactions within the vicinity of the land to be valued are gathered and analyzed. The recorded sales of land transactions are available at the Land and Survey Department and these records are determined by market forces and not controlled by the Government.

Based on the Department’s record, there are also sales of land within Bako Peninsula which are significantly lower than those reported in the media. These sales were transacted recently and some were only in the region of RM22,000 to RM3O,000 per acre. These sales record are available for search at the Department.

Prior to the determination of market value for land for the purpose of compensation, the evidence of sales of land within the vicinity of the land to be valued are gathered and analysed and due adjustments for factors affecting value such as locality, accessibility, size and etc are made. The analysis covers all market land transactions evidence irrespective of whether they are of high or low sales. This method of determining the market value for land through comparison is the main method adopted and accepted in this country ‘and globally.

There is no restriction under the Law on selling and buying of land which is subject to section 47. However, the prospective purchaser is required to sign a Statement to the effect that he/she is aware of the existence of section 47 and in the event that the Government acquires the land, the consideration price would not be taken into account when assessing compensation payable. Thus, it is not right for the landowners to compel the Department to pay compensation equivalent to or higher than their purchase price. Henceforth, a person who knowingly purchases land subject to section 47 is taking a personal risk when he/she is willing to pay at a price which may not reflect the actual market value as at the date of section 47.

Some of the affected landowners are mere speculators, hoping to profit from the situation. For example, based on our records, there are two cases where the purchase was made in year 2002 over lands which would expire in year 2006. The two parcels were transferred at a price of only RM291 and RM627 per acre respectively. It is apparent that these landowners are hoping for a windfall in the event that the government agrees to renew the land titles and release the land from Section 47. It is therefore not fair to blame the Government when they are fully aware of the laws and its implications.

Datu Sudarsono Osman
Director of Lands and Surveys Sarawak