Worse still, said Pua, the government is paying for the project estimated to be worth RM600 million to RM700 million by offering the developer a parcel of land worth at least RM970 million.
The project to build the 1National Institute of Health (1NIH) was awarded to Sentosa Jitra Sdn Bhd, a 50 percent associate of SP Setia Sdn Bhd.
The SP Setia statement said the ministry's integrated research complex will be built in Shah Alam and paid for by way of a "land swap for government land measuring 40.22 acres along Jalan Bangsar".
"Maybank Investnment Bank has estimated the value of land obtained by SP Setia to be worth... up to RM1.8 billion," said Pua.
"ECM Libra also estimates the gross development value (of the land) to be around RM8 billion."
The 1NIH project, he added, is a "mirror image" of the RM682 million contract awarded to Naza TTDI to build the Matrade International Convention and Exhibition Centre, which was paid for with land valued at least RM970 million.
"Government losses from (the Matrade and 1NIH projects) come up to RM1.28 billion combined and would have more than offset the 'savings' generated from the most recent rounds of subsidy cuts on essential goods, estimated to be about RM1 billion," he said.
"Cancel project and call open tender'
The DAP parliamentarian said that, what the federal government has done is in contrast to the way the Penang government awarded a RM300 million project to build a convention centre, also won by SP Setia, but through competitive bidding.
In this case, the developer would only be paid RM50 million by the state government, but it would be allowed to recoup its investment through the management and operation of the centre for 30 years.
"We call upon Najib to cancel the (SP Setia) transaction and instead call for an open tender to build the proposed 1NIH.
"The government must conduct an open auction for the prime land in Bangsar, not only to ensure that the rakyat's interests if prioritised, but also to prevent the (reform programmes) from becoming... dead and buried."