YCDC Lost Millions in Park Leasing Process: Auditor General

The Yangon City Development Committee (YCDC) has lost millions of dollars in the process of leasing recreational parks in Yangon to private companies, the Auditor General of Yangon region said at a special meeting of the regional parliament.

“The country is losing money on the leases of parks in Yangon. YCDC’s playgrounds, parks and gardens department should check the agreements and re-sign them,” urged U Myint Aung, Auditor General of Yangon region.

Some of those places include Karaweik Garden, Kandawgyi Garden, People’s Park and People’s Square, and Mya Kyun Thar Park.

In the lease of Karaweik Garden to Zaykabar Company, 25 acres of land were agreed to be rented for 30 years starting in 2010. The first five years’ rent was set at K30 million, with an increase of 5 to 10 percent in each five-year phases.

The Auditor General’s report said the company has received disproportionate financial advantages from this agreement compared with other land leasing agreements in the area. It said the Dolphin Restaurant located in Kandawgyi Garden, situated around the same area, is paying K7 million in rent per year for 1,240 square feet. At that rate, 25 acres will cost K1.085 billion, meaning about K1 billion was lost in the Karaweik agreement, said the report.

In the same way, 76.36 acres of land from People’s Park and People’s Square were agreed to be rented to Natural World Company starting in 2011 at a price of K32.21 million per year for a period of 30 years.

However, 36 acres of land of the Regional Government which is opposite People’s Park and People’s Square, was rented at a rate of K6.1 million per month. At the same rate, 76.36 acres are supposed to cost K5.55 billion, making it another losing deal for YCDC, the Auditor General’s report said.

For Mya Kyun Tha Park, the Defence Ministry has already handed over the park to YCDC. However, the rental agreements that were agreed under the Ministry of Defence with other companies are still continuing, in which the rent is K12 million per year for 60 years. The report alleged that no tender was called and no permission was asked from the Myanmar Investment Commission (MIC) for those long-term agreements.

Source: Myanmar Business Today

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