PENANG TO PROBE CHEAP LAND SALE UNDER BN

GEORGE TOWN : Penang will now probe the sale of some 4,000 acres of state land for cheap by the previous Barisan Nasional (BN) state government, in what is seen as a backlash by the coalition in attacking the Pakatan Rakyat (PR) administration’s development policies in its first term of office.

Penang Chief Minister Lim Guan Eng said today the state executive council meeting on Friday formed a special committee under state executive councillor Chow Kon Yeow to look into the matter.

“Selling state land cheaply caused financial losses to the people of Penang and were amongst the many reasons Gerakan lost all its seats and BN was rejected in the 2008 general elections,” Lim said in a statement today.

Penang BN leaders have been slamming the Lim administration for hill slope developments and also selling a piece of land for a private hospital project in Taman Manggis instead of providing low-cost housing in the state. But the Penang government has hit back, saying most of the hill slope projects were approved during BN’s rule and that scrapping them would cost millions.

Lim (picture) brought up the issue today and zeroed in on the private hospital project, saying Penang BN were unable to prove claims that he, his four state exco colleagues and his political secretary had a personal interest in the hospital project.

“Why did BN never announce to the press until now that the 1.1-acre piece was reserved for public housing in 2003 nor built from 2003-8, especially when the so-called public housing project was also not marked in the layout plans?” he asked, saying the ruling federal coalition had run out of political capital with its attacks.

“As the Taman Manggis land is by open tender, anyone can bid. Even my landlady or BN cronies can also bid and will be awarded if they pay the highest price. Why drag my landlady (into this) when she or her company did not even bid for the 1.1 acre piece of land?” he added.

Lim said he has directed all state government departments especially the Land Office, the two local governments and Penang Development Corporation to give full co-operation to Chow in the committee’s investigations.

He also said the committee would look into the sale of some 4,000 acres of state land that were sold cheaply or without an open tender including:

1) In the Tanjong Tokong Reclamation, under Agreements dated 1990 and 1999 where the developer was given the right to reclaim and develop 980 acres of land off Tanjong Tokong at the price of RM1 per square foot.

2) 750 acres of land in Batu Kawan was sold in 2004 at between RM3.05 and RM4 per square feet.

3) The Jelutong Expressway, under Agreements dated 1997, 2002 and 2003 where the developer was given the right to reclaim 325 acres of land in exchange for constructing the Jelutong Expressway at an estimated cost of RM300 million and cash payment of RM25.4 million.

“In other words, the total cost is RM325.4 million for 325 acres or the cost of reclaimed land at Jelutong Expressway is RM1 million per acre or over RM 20 per square feet. What’s more the developer can pay RM25.4 million over 10 years from 2005 up to 2015 — surely a record for length of payment period,” he said.

Lim also said BN could have proven its sincerity in building low-cost housing if it had built two 17-storey blocks of low-cost flats on the present 1st Avenue and Traders Hotel sites.