Kedah Menteri Besar Datuk Seri Muhammad Sanusi Md Nor has questioned why he is being linked to an alleged RM40 million criminal breach of trust case involving the abandoned Sungai Petani International Racing Circuit project, insisting he has no knowledge of the individuals detained.
He cautioned against making accusations without understanding the full circumstances, warning that doing so could lead to slander.
Sanusi said the case appeared to involve dealings between companies and the relevant authorities, adding that he did not know who had been arrested or who had allegedly lost the money.
“Companies have their own dealings. They can settle the matter with the authorities. I don’t even know,” he said.
“I cannot answer on behalf of others. I don’t even know who was arrested or who lost the money. So how can they accuse Sanusi?”
He was speaking to reporters after a handover ceremony for land titles and house keys under the Desa Sejahtera Perik housing programme in Mukim Kurong Hitam on Thursday.
Previously, media reports said a female company director in her 30s had been arrested on suspicion of criminal breach of trust involving RM40 million linked to the stalled racing circuit project.
The suspect was detained by the Anti-Money Laundering Criminal Investigation Division of Bukit Aman following a police report by a major shareholder over share purchase transactions involving the company between April and June 2024.
Sanusi said the state government had previously clarified that the project received RM30 million in funding from the Youth and Sports Ministry (KBS). Of that amount, RM10 million was allocated for land matters, while the remaining RM20 million was intended for the project itself.
He explained that the original proposal involved a much larger development costing approximately RM73 million, with the parties involved subsequently applying for an additional RM40 million.
“They had received RM30 million and used RM10 million, while asking for another RM40 million from the RM20 million balance. They submitted a planning permission application for a RM73 million project,” he said.
Sanusi added that after reviewing the proposal, the state government decided that any development should be scaled down to a more manageable size rather than built to the standards of the Sepang International Circuit (SIC).
The change in scope meant that planning permission and land-related matters had to be reassessed. He said the state also needed to ensure public funds were not spent on land owned by a private company.
The state government is still evaluating whether the project should proceed as a private or government-led development, depending on the overall cost and its financial capacity.
“If it is too big and beyond the government’s means, the private sector should undertake it,” he said.
“If it falls within what the government can afford, we can use the RM20 million for the project. If it costs more than that, we cannot proceed,” he added.
