Land Custody and Development Authority Ordinance, 1981 ( Ord. No. 4/81 )

the registered proprietor of the land as defined in section 2 of the Land Code [Cap. 81(1958 Ed.)]; or

any native lawfully occupying Native Customary Land as defined in section 2 of the Land Code [Cap. 81(1958 Ed.)]; or

any person deemed a native under section 3(2) of the

Ordinance or under section 9(1)(d) of the Land Code [Cap.

81(1958 Ed.)] for the purpose of holding, dealing, occupying or developing any Native Area Land, or any Native Customary Land which is to be issued with title, within a Development Area.”.

[Sub. Cap. A150/2011]

In this Ordinance a reference to the Yang di-Pertua Negeri shall be construed as a reference to the Yang di-Pertua Negeri acting in accordance with the advice of the Majlis Mesyuarat Kerajaan

Negeri or of a member thereof acting under the general authority of the Majlis.

The Authority may, subject to and for the purposes of this

Ordinance, enter into contracts and may acquire, purchase, take, hold and enjoy movable and immovable property of every description, and subject to any written law affecting the same may convey, assign, surrender and yield up, charge, mortgage, demise, reassign, transfer or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Authority upon such terms as the Authority seems fit and do all other matters or things incidental or appertaining to a body corporate.

[Ins. Ord. No. 9/85.]

The Authority and any company incorporated by the

Authority under section 10(1)(c) wherein the controlling shares are held by or registered in the name of the Authority shall for the purposes of the Land Code [Cap. 81(1958 Ed.)], be deemed to be a

Native of Sarawak.

[Ins. Cap. A150/2011]

The Authority shall consist of the following persons who shall be appointed by the Minister⎯

A certificate signed by the Chairman that a company has been incorporated by the Authority under section 10(1)(c) and that its controlling shares are held by or registered in the name of the

Authority shall be conclusive evidence that the company is deemed a native under subsection (2) for the purposes of the Land Code [Cap.

81(1958 Ed.)].

[Add. Cap. A150/2011]

A member of the Authority shall, subject to such conditions as the Minister may specify in the instrument appointing him, hold office for a term not exceeding three years and is eligible for reappointment from time to time.

A member of the Authority who is not a member of the public service may be paid by the Authority such remuneration and allowances as may be determined by the Minister.

During the temporary incapacity from illness or any other cause or during the temporary absence from the State of the

Chairman, Deputy Chairman or any member, the Minister may appoint another person to be a temporary Chairman, Deputy Chairman or member, as the case may be.

[Am. Ord. No. 9/85.]

The Authority may request any person (not being a member of the Authority) to attend any meeting of the Authority for the purpose of assisting or advising it on any matter under discussion but such person so attending shall have no right to vote at the said meeting.

[Ins. Ord. No. 9/85.]

Office of the Authority

The General Manager shall be responsible for the day to day administration and management of the affairs of the Authority and may, subject as is expressly stated in this Ordinance, give decisions and exercise all powers and do all acts which may be exercised or done by the Authority.

The General Manager shall be the principal executive officer of the Authority and be responsible for the preparation and execution of programmes, schemes or projects, for the carrying out of the decisions of the Authority, for the issue of policy guidance or of elucidation of decisions of the Authority and for the supervision and control over the implementation of such decisions, and may participate without the right to vote in any meeting of the Authority.

The General Manager shall be answerable to the Authority for his acts and decisions and shall perform such other or further duties as the Authority may from time to time determine.

The Deputy General Manager shall be responsible to the

General Manager and shall perform such duties as the Authority may from time to time determine, or as the General Manager may from time to time direct.

Direction of the Minister

The Chairman shall summon meetings of the Authority as often as required but not less frequently than once in three months.

Four members may requisition a meeting of the Authority.

Five members present at a meeting of the Authority shall form a quorum.

All decisions at a meeting of the Authority shall be adopted by a simple majority of votes of members present and voting:

Provided that if upon any question the votes are equally divided, the Chairman or the person presiding shall have a casting vote.

Disclosure of interest

A disclosure under subsection (1) shall be recorded in the minutes of the Authority and, after disclosure, the member⎯

No act or proceeding of the Authority shall be questioned on the ground of the contravention by a member of the provisions of this section.

to formulate and carry out in any area which has been declared to be a Development Area under section 11 projects and schemes for⎯

development, redevelopment, settlement and resettlement of land;

to act as trustee or managing agent for any owner of land within a Development Area, and to assist the owners of such land to facilitate or enhance the development thereof towards achieving better economic usage so as to realize their economic potentials.

[Sub. Cap. A150/2011]

to co-ordinate, manage and supervise such activities whether or not the undertaking in question is carried on on any land owned by or vested in the Authority in a Development Area;

to provide loans, advances and other credit facilities for development;

12

Ord. No. 4/81

to provide facilities and amenities to owners for the development and settlement of their land in a Development Area;

to act, in transactions relating to land within the Native

Area Land or Native Customary Land, as a purchaser of last resort of such land; and

to undertake such other functions as the Yang di-Pertua

Negeri may from time to time direct.

Powers of the Authority

to initiate preliminary studies of possible development areas in the State and make⎯

plans for carrying out rehabilitation programmes and improvement schemes;

preliminary surveys to determine if the undertaking and carrying out of such projects and schemes are feasible;

to carry on such activities in association with the

Government, any public or local authority, any corporation, any company, any body or any person or as managing agents or otherwise on their behalf, or to enter into any arrangement with

13

any such bodies or persons for sharing profits, union of interests, co-operation, joint venture or reciprocal concession;

to appoint or employ agents or to establish or promote the establishment of companies, corporations or other bodies to carry on any of the aforesaid activities either under the control or partial control of the Authority or independently;

to establish corporations or associations consisting of the owners or persons having interests in the land;

to give assistance to any public authority, company, corporation or other body or person appearing to the Authority to have facilities for the carrying on of any such activities, including financial assistance by the taking up of share or loan capital or by loan or otherwise;

to control, co-ordinate or supervise the management of the land in a Development Area or land owned by or vested in the

Authority or for which it has become responsible and may cause to be carried out or may undertake any of the aforesaid activities for the improvement or development of such land as it deems fit;

to purchase, sublease or otherwise acquire land or any rights or interest therein and otherwise deal with property, movable or immovable irrespective of the title thereof;

to invest any property belonging to the Authority in such manner as it thinks fit (and whether alone or in association with others) in the acquisition, development or management of land used or to be used for residential, agricultural, commercial or industrial purposes;

[Am. Ord. No. 9/85.]

to consult with, co-ordinate and assist the activities of persons or organisations engaged in carrying out development in a Development Area;

14

Ord. No. 4/81

to sell, purchase, acquire or sublease land for the purpose of housing, agriculture, trade or industry or for general economic development or for social amenities;

[Am. Ord. No. 9/85.]

to facilitate and provide land for the establishment or expansion of projects to which this section applies;

to make and guarantee loans to an officer or employee of the Authority⎯

for the purchase, erection, alteration, renovation or enlargement of a house in which he resides or intends to reside, under standing orders approved by the

Authority;

to guarantee, within such limits as shall be fixed by the

Minister, any loans made by any bank or other financial source to any applicant approved by the Authority for any purpose for which the Authority might itself have granted such loan;

to do anything and to enter into any transaction

(whether or not involving expenditure, borrowing in accordance with this Ordinance, granting of loans or investment of money, the acquisition, use and disposal of any movable or immovable property, including rights) which in its opinion is calculated to facilitate the proper discharge of its functions or is incidental or conducive thereto.

In the exercise of the powers conferred by subsection (1), the Authority shall comply with the direction given by the Minister under section 6 and any plan or scheme for the development of any

Development Area drawn up or devised or approved by the

Government.

[Sub. Cap. A150/2011]

15

Development Area

Where an area has been declared a Development Area pursuant to subsection (1), the Authority shall―

The Minister may at any time by order in the Gazette alter, replace or extend any Development Area.

As from the date of coming into force of the declaration made under subsection (1), no dealing affecting any land within a

Development Area or any change of the category or use of any such land, may be effected, without the prior consent of the Minister.

[ Add.Cap. A150/2011]

17

For the purpose of subsection (5), the word “dealing” shall have the same meaning assigned to it under section 2 of the Land

Code [Cap. 81 (1958 Ed.)].

[ Add.Cap. A150/2011]

“ Powers of the Authority to develop land on behalf of owners in a

Development Area.

In the development of the land described in subsection

and in carrying out all activities incidental thereto, the

Authority shall be deemed to be an agent of the Government and the provisions of section 29(2) of the Government Proceedings

Act 1956 [Act 359] shall apply to the Authority.

Where there is any dispute or difference between any of the parties to any Development Agreement, such dispute or difference shall be resolved in the manner as follows―

The provisions of subsection (3) shall be deemed to have been incorporated into and form an integral part of any Development

Agreement whether the Development Agreement was entered into before or after the date of coming into force of the provisions of subsection (2).

Any action, claim, suit or proceedings filed in any court of law after the date of coming into force of this section, without compliance with the provisions pertaining to mediation and arbitration under subsection (3), shall be stayed.

[Sub. Cap. A150/2011]

Power to vest

The corporation or other body established by the Authority under this section shall be managed in accordance with such

19

regulations and directions as may, from time to time, be made by the

Authority.

Compulsory acquisition of land

Where land over which native customary rights are exercised is required for the purposes of this Ordinance, such rights may be extinguished in accordance with section 5 of the Land Code

[Cap. 81 (1958 Ed.)].

The purpose for which land is acquired pursuant to the provisions of this section shall be deemed to be a public purpose under the Land Code.

When such land is to be acquired compulsorily under subsection (1), an order shall be published in the Gazette declaring that the land described in the order shall be compulsorily acquired at the expiration of the period of three months from the date of the publication of such order, and a copy of the order shall be served on the Director of Lands and Surveys and on the owner and occupier of such land, if such owner or occupier cannot be found, a copy of the order shall be fixed on some conspicuous part of such land.

Upon the expiration of such period, such land shall vest in the Authority free of all encumbrances and the Register kept under the

Land Code [Cap. 81 (1958 Ed.)], in which the title to such land is registered, shall be rectified accordingly.

Compensation shall be payable by the Authority in respect of any land compulsorily acquired under subsection (1).

In assessing the compensation payable in respect of any land or building or any interest therein proposed to be acquired compulsorily pursuant to subsection (1) the estimate of the value of the building or land shall be based upon the fair market value thereof at the date of publication of the declaration under subsection (4), due regard being had to the nature and condition of the property, the probable duration of the building in its existing state, and the state of repair thereof, without giving any allowance in respect of the compulsory purchase or other matters :

Provided that when assessing the compensation payable in respect of any land or building situated within a Native Area Land to which the declaration relates, compensation shall be based in the fair market value that would have been obtainable if the land or building were situated within a mixed zone land.

The expenses and compensation in respect of any land acquired or customary rights extinguished pursuant to the provisions of this section shall be paid by the Authority.

If the person to whom compensation is offered under subsection (7) is aggrieved by the amount thereof, he may request that the matter be referred by the Authority for the determination of the

High Court and sections 56 to 59, 62 to 72 and 76 to 78 of the Land

Code shall mutatis mutandis apply for the purpose of determining the amount of compensation to be awarded.

Application by persons who require land for development purposes

Provision may be made by regulations under this

Ordinance with respect to the procedure to be followed in connection with the submission and the terms and conditions of approval of such application.

21

Sublease

into which shall be paid⎯

such sums as may be appropriated from time to time for the purposes of the Authority by the Dewan

Undangan Negeri;

all other sums or property which may in any manner become payable to, or vested in, the Authority in respect of any matter incidental to its powers and duties;

out of which shall be defrayed⎯

all expenses incurred by the Authority in the administration of this Ordinance;

monies for the purposes of granting loans; and

The power of the Authority to borrow shall be exercisable only with the approval of, and subject to such conditions as may be imposed by, the Minister. Any approval given in any respect for the purposes of this section may be either general or limited to a particular borrowing or otherwise.

Power to make loans

The Authority shall in every year cause to be prepared in a form to be approved by the State Financial Secretary a budget to be forwarded to the Minister not later than the 31st day of August containing estimates of income and expenditure of the Authority for the ensuing year and such other particulars as the State Financial

Secretary may require.

The estimates of income and expenditure of the Authority for each development project or enterprise shall be prepared separately and apart.

The Minister may approve or disallow any item or portion of any item shown in the budget, and shall return the budget as amended by him to the Authority.

The Authority may at any time submit to the Minister a supplementary estimate for any one year and the Minister may allow the whole or any apart of the additional expenditure included therein.

Accounts and audit

The form of the accounts and of the statement shall be such as to cause the provision of separate information as respect each of the main activities or functions of the Authority. Accounts of moneys for each project or enterprise shall be kept separate and apart.

The accounting records of the Authority shall distinguish between capital and revenue transactions.

Moneys received by way of loans shall be shown separately in the books and accounts and in the balance sheet of the

Authority.

The accounts of the Authority shall be audited annually by the Auditor General or any person authorized by him in that behalf.

[Am. Ord. No. 9/85.]

After the end of such financial year, and as soon as the accounts of the Authority have been audited, the Authority shall cause a copy of the statement of accounts to be transmitted to the Minister together with a copy of any observations made by the Auditor General or other auditor appointed under subsection (5) on any statement or on the accounts of the Authority.

The Minister shall cause a copy of every such statement and observation to be laid before the Dewan Undangan Negeri.

Reserve fund

shall appoint a Finance Committee for regulating and controlling the finances of the Authority; and

25

may from time to time appoint such number of other committees, either of a general or special nature for the purpose of examining and reporting upon any matter, or performing any act, which in the judgment of the Authority would be more conveniently performed by means of a committee;

from among its own members or other persons who are not members of the Authority and consisting of such number of members or other persons as the Authority may think fit.

The Authority may, subject to such conditions or restrictions as it thinks fit, delegate to any such committee or the

Chairman or the General Manager or other officers of the Authority any of the powers, functions and duties by this Ordinance vested in the Authority, except the power to make subsidiary legislation or to borrow money or to raise loans by the issue of bonds and debentures;

and any power, function or duty so delegated may be exercised or performed by such committee, or the Chairman or the General

Manager or such other officer in the name and on behalf of the

Authority.

Officers and employees of the Authority shall hold office for such period or periods, receive such salaries and allowances and be subject to such other terms and conditions of service as may be determined by the Authority with the approval of the Minister.

All officers and employees of the Authority shall be under the general control of the General Manager.

The Authority may employ and pay agents and technical advisers including advocates and solicitors, bankers, stock-brokers, surveyors or valuers or other persons, to transact any business or to do any act required to be transacted or done in the execution of its duties or for the better carrying into effect of the purposes of this Ordinance.

Standing orders

the terms and conditions of service of its officers and employees;

the pensions or other superannuation benefits of its officers and employees;

the conduct and management of its activities.

Unless otherwise provided, a reference in this Ordinance to an officer of the Authority shall include reference to the General

Manager, the Deputy General Manager and any executive officer.

Personal immunity

Any person contravening the provisions of subsection (1)

shall be guilty of an offence: Penalty, imprisonment for six months or a fine of one thousand ringgit.

the regulation of the development of land in accordance with proper planning;

the classes of use of land and buildings or parts thereof;

controlling and restricting the distribution of land for development;

regulating and controlling the development of land in a

Development Area and the conduct and administration of such land;

regulating the distribution, sale and use of flats, houses or buildings;

matters in connection with shares, stock, bonds, debentures or debenture stock issued under this Ordinance;

the manner in which and the terms and conditions on which grants, advances or loans may be granted by the Authority to owners, occupiers or sublessees for the purposes of effectively carrying out development;

the procedure for calling, hearing, determining and recording claims and compensation under this Ordinance;

(hh) the procedure for the conduct of any mediation or arbitration provided under section 12(3) of this Ordinance;

[Sub. Cap. A150/2011]

defining the relations of the Authority with the owner or occupier of the land for the purpose of development;

the manner in which and the terms and conditions on which land in a Development Area may be developed;

prescription of forms or the imposition of fees; and

prescribing anything that may be, or is required to be, prescribed under this Ordinance.

Annual report

Every person who willfully obstructs or interferes with any person in the lawful exercise of any power conferred by this section shall be guilty of an offence : Penalty, a fine of five hundred ringgit or imprisonment of one year or both.

[ Sub. Cap. A150/2011]

[Ord. No. 4/81]

LIST OF AMENDMENTS

Amending Law

Short title

In force from

Cap. A150/2011

Land Custody and

Development Authority

(Amendment) Ordinance,

2011 15.10.2012

[Swk. L.N. 123/2012]

Cap. A165/2014

Land Custody and

Development Authority

(Amendment)

Ordinance, 2014 1.1.2015

[Swk. L.N. 2/2015]