Former deputy questions OCM's 'financial prudence' in land swap deal

New Straits Times

15 hours ago

KUALA LUMPUR: Former Olympic Council of Malaysia (OCM) deputy president Datuk Seri Azim Zabidi has questioned OCM's decision to enter a land swap deal which he claims could potentially strain them financially.
Under the agreement between OCM and Malaysian Resources Corporation Berhad (MRCB), the latter will take ownership of OCM's current headquarters - Wisma OCM (0.73 hectare) at Jalan Hang Jebat - in return for building a new RM93 million facility for OCM.
The new headquarters - dubbed the Olympic House - will be built on a 5.38 acre plot of government land in Bukit Jalil. OCM will lease the land for a period of 30 years for RM10 million.
Azim questioned OCM's financial prudence as the umbrella body will not receive any cash out of the deal.
"This deal raises serious questions about OCM's financial prudence and long-term sustainability. Most perplexing is the absence of any cash benefits to OCM, despite Wisma OCM being valued at RM132 million," said Azim in a media statement released today (June 30).
"The valuation used in the swap is reportedly lower due to plans to demolish the existing building.
"Instead of gaining financial resources, OCM is incurring additional costs and risks. Once the sub lease expires after 30 years, the organisation may be forced to vacate the new premises, potentially facing further financial and operational disruptions.
"I am particularly concerned about the lack of a cash component in the deal, especially when OCM is in need of substantial funding to support various International Olympic Committee (IOC) initiatives."
Azim added that OCM deserves to have a new headquarters but stressed that the umbrella body should look at other, more financially beneficial alternatives to build their new headquarters.
"It is imperative that OCM's leadership seek broader consultation and explore more sustainable alternatives. Transparency from the (OCM) Executive Board is essential. This project should only proceed if it clearly
benefits the organisation and its affiliates," he added.
"I urge OCM to consider reopening discussions with its neighbour, PNB Merdeka Ventures — the developer of the nearby Merdeka 118 tower — to explore a more strategic location with better financial returns.
"Alternatively, OCM could consider constructing a more affordable headquarters, potentially integrated with a two-star hotel, allowing surplus funds to be reinvested into operations and human capital development.
"More than 70 years into its existence, OCM is right in wanting to build an image befitting its status as the national Olympic committee of Malaysia.
"However it must also focus on modernising its management, investing in human capital, and ensuring long-term financial sustainability for its members — especially in these challenging economic times.
"Under these circumstances, OCM may proceed with a land swap deal as long as it is economically viable for the umbrella body in terms of increasing its cash reserves, not by depleting its savings."
Azim had served as OCM deputy president between 2018-2021.
OCM president Tan Sri Norza Zakaria had previously clarified that the RM93 million valuation was for the land Wisma OCM was situated on, while the rest of the valuation was for the building.
Norza said only three companies responded to a request for proposal (RFP) issued by OCM, adding that no developer was keen on taking over the aging Wisma OCM building - built in 1991 - but there was interest in the land.
OCM secretary-general Datuk Nasir Ali said it is unlikely PNB would have offered a better deal.
"I am not sure whether we did talk to them (PNB) previously, but I do believe PNB is aware and if they really wanted to buy, they would have approached us already," said Nasir when contacted today (June 30).
"Even if PNB were to put in an offer, they would have likely done the same thing MRCB did and offered us similar terms."
Nasir added that OCM is considering including a hotel as part of their new headquarters.
OCM currently rents out a section of Wisma OCM to a hotel operator. This forms part of their current income stream which also includes office and event hall rentals.
"We are thinking of including a three or four star hotel to sustain our income. There are not many hotels in Bukit Jalil so there will likely be demand for it," said Nasir.
"We will also be renting out office spaces to national sports associations and there will also be an events hall.
"We could also invite sporting bodies from around the region to set up their offices there. This is all part of our income generation plan."
Nasir added that the purpose of moving to
Bukit Jalil extends beyond turning a profit for OCM.
"It is not about making money, it is about being in the Kuala Lumpur Sports City (Bukit Jalil) close to our stakeholders. We want headquarters we can be proud of, especially when we have foreigners visiting our facility," said Nasir.
"If we wanted to make money we could have just asked the developer to build us a cheaper facility in Nilai or somewhere else and keep the rest of the money but that would defeat the purpose. We would be far away from where all the sports activities are.
"I think if we have established ourselves as part of the Kuala Lumpur Sports City, it is likely we can remain there beyond the 30-year lease.
"We do not need huge sums of money to run our programmes. IOC programmes often come with (IOC) funding while major sports programmes for NSAs are funded by the National Sports Council.
"I agree with Azim that we do need to invest in our human capital as well as other elements such as digitalisation, improving our archives as well as environmental, social and governance (ESG) factors. We will definitely be looking into this."
OCM expects construction work for the new headquarters to begin by the end of the year once necessary approvals from local authorities have been obtained.
The facility is expected to be completed by late 2028.