DAP ADUN for Sekinchan Ng Suee Lim tabled an oral question last week requesting the state government to list out the royalty paid in return to Selangor Government by the Federal Government for the submission of Putrajaya to the Federal Government.
According to the agreement sealed between the Selangor Government and the Federal Government, the Federal Government agreed to pay RM200 million upfront and an annual royalty of RM7.5 million to Selangor Government; in return Putrajaya will be given forever to the Federal Government.
Nobody would believe the then Selangor Government could sign such a lopsided deal with the Federal Government when the then Selangor Government chopped off a big piece of land to the Federal Government with only RM7.5 million as annual royalty, which is considered very low.
The Mentri Besar told reporters during a press conference that he will seek an audience with the Sultan of Selangor to check out how to increase the royalty.
If the Selangor Government were to negotiate with the State Government on this matter, I would suggest that the current status of Kuala Lumpur to be included in the talks.
Kuala Lumpur was officially placed under the jurisdiction of Federal Government in 1st February 1974 and thus becoming the administration centre and the capital of the Federal Government since then. When the Federal Government took over Putrajaya from Selangor in 2000, Putrajaya emerges into a new Federal Government administration centre, slowly replacing Kuala Lumpur.
Though Kuala Lumpur is still the capital of the Federal Government but it is no longer a federal administration centre. Today, only 8 ministries out of a total of 31 ministries are now still operating from Kuala Lumpur. These ministries are the Housing and Local Governments Ministry, Defense Ministry, Tourism Ministry, Information Ministry, International Trade and Industry Ministry, Heritage Ministry, Women, Community and Family Development Ministry and Works Ministry. And it is well understood that the Information Ministry has to be based in Kuala Lumpur as Angkasapuri is located in Kuala Lumpur.
Since most ministries have moved to Putrajaya, there is question that whether it is appropriate for Kuala Lumpur to remain under the jurisdiction of Federal Government?
If the Federal Government refuse to amend the agreement to allow Selangor Government to lease Putrajaya to Federal Government (which will allow the Selangor State Government to be able to collect a reviewed royalty every year based on market price), then the Selangor Government should seriously consider to include Kuala Lumpur in the negotiation package, by also seeking to review the agreement signed between the two parties when Kuala Lumpur was carved out of Selangor.
It is possible for Federal Government to refuse to review the Putrajaya agreement. After all, Putrajaya has become the administration centre for the Federal Government for the past eight years and certainly the Federal Government will not wish to disrupt their operations in Putrajaya. Secondly the agreement signed eight years ago is benefiting the Federal Government.
However, from the view of the Selangor State Government, if the Selangor State Government only collect a mere RM7.5 million a year as annual royalty and RM200 million as initial payment, I dare not think about the royalty that we are suppose to collect for Kuala Lumpur, as it could be much lower considering the fact that Kuala Lumpur was taken away 34 years ago. The annual royalty paid to the Selangor Government could be insignificant considering the huge inflation rate incurred between 1974 and 2008.
That is why the Selangor state government must also include the future of Kuala Lumpur in the deal, of whether it is possible for both parties to enter into a new leasing agreement, or the Selangor state government could seriously consider taking back the management of Kuala Lumpur.
What is most important is that the Federal Government must be fair to Selangor Government.