Malaysia

Umech land deal: grounds for MACC to investigate Penang govt, says Gerakan

Oh Tong Keong accuses state government of shifting policy by direct negotiation instead of open tender.

Updated 2 years ago · Published on 05 Oct 2023 10:36AM

Umech land deal: grounds for MACC to investigate Penang govt, says Gerakan
Penang Gerakan chairman Oh Tong Keong. Facebook pic.

by Ian McIntyre

GEORGE TOWN – Gerakan has insisted that there are grounds for the Malaysian Anti-Corruption Commission (MACC) to investigate the DAP-led Penang government following claims by the Penang Chinese Chamber of Commerce on possible irregularities over the sale of land to Umech Construction Sdn Bhd.

Based on media reports alone, the MACC can initiate investigations or at least call up the interested individuals, said the party's deputy president Oh Tong Keong.

Speaking to The Vibes, Oh claimed that the entire transaction spells of a big conspiracy as the chamber usually steers clear of state policies.

He said that Gerakan is not overly concerned over who conceived the deal, but it is apparent that the current state government has overlooked its pledges for competency, transparency and accountability (CAT) driven government.

Instead, Chief Minister Chow Kon Yeow has admitted openly to direct negotiation for the project running afoul with the CAT principles, Oh said.

There is much explanation for the state to conduct as the people remain confused over how the state should shift its policy from holding open-tender to direct negotiation, he added.

"After all, the previous Gerakan-led state government was also accused of not following open tender," said Oh, who is also Penang Gerakan chairman.

He said that the rate at which DAP is not following what it preached previously is starting to unsettle the people here. 

Oh also said that the PDC had previously only leased out lands to developers due to the acute shortage of land in the state.

But under Chow, the state seems intent of only selling land, which comes at the expense of the people, he said.

Chow replied to the chamber’s queries yesterday. He said that he had replied to the organisation on August 25 on their grouses.

Since the chamber continued to seek answers, Chow issued a statement yesterday, saying that the land sale was on the back of a Byram Industrial Park project, which the state had transacted with Umech in the Dubai (trade) exposition in 2020.

“Due diligence was also conducted on the project,” said Chow, adding that direct negotiation was thereby decided as the suitable recourse to secure the best offer for PDC.

Apart from the Umech project, Chow said that the mixed development of 245 acres in Bandar Cassia by the Aspen property development group was also secured through such a process.

The same was for the development of a university by Paramount Property Sdn Bhd which also went through a similar direct negotiation process, said Chow.

These two projects were listed under the high-impact category, added Chow.

The sale of land to Umech was based on direct negotiation and was calculated based on the concurrent market valuation of the plot.

PDC followed all procedures, but Chow admitted that the last-minute inclusion of the major master developer Sunway Group into the project was beyond the knowledge of PDC.

“The entry of Sunway as a major shareholder in Umech was beyond PDC. It was only related to us later when a public announcement was made over the signing of an agreement between PDC, Umech and Sunway,” said Chow.

Although Umech was bound to inform PDC of any change in the company equity, the entry of Sunway into the construction giant happened before the agreement was signed with PDC, said Chow.

PDC plans to seek clarification from Umech over the matter at the upcoming PDC board meeting, he added. – The Vibes, October 5, 2023

Related News

Malaysia / 8h

BN-PH ties strained by grassroots reality, not Putrajaya pact, says analyst

Malaysia / 5d

Melaka political crisis: 'No more room for negotiation' - Ab Rauf

Malaysia / 6d

Ab Rauf says Melaka government will remain stable despite DAP pullout

Malaysia / 1w

DAP withdraws support for Melaka govt after assembly approves seven appointed seats

Malaysia / 1w

Melaka DAP to hold press conference amid speculation of exiting state government

People / 1w

Koh Tsu Koon – a former Penang CM who still serves the rakyat

Spotlight

Malaysia

PRNNS: Loke: 'We must win all 11 seats to help PH form state government'

Sports & Fitness

Spain ends Argentina’s World Cup reign with extra-time triumph to reclaim global crown

World

Cat found alive after being buried under Venezuela quake rubble for days (video)

Malaysia

“Resign if you attack fellow Unity Government partners,” Anwar enforces discipline

Malaysia

PH youth wing calls on BN ministers to quit cabinet over PN electoral alliance

Malaysia

Rosmah asks for prayers as Najib prepares for medical procedure

Malaysia

Woman at a loss after fake Hong Kong lawyer offers to recover money from previous scam

You may be interested

Malaysia

Millions may gain from broader Sara Aid expansion to combat rising costs

Malaysia

Bung’s widow cleared of abetting late husband in RM2.8m corruption case

Malaysia

BN-PH ties strained by grassroots reality, not Putrajaya pact, says analyst

By Alfian Z.M. Tahir

Malaysia

Malaysia faces record heat risk in 2027 as El Niño expected to intensify

Malaysia

AirBorneo an important ‘air bridge’ between Sarawak, Peninsular Malaysia – Abang Jo

Malaysia

eFishery loss will not jeopardise KWAP’s finances or pension payments - Tengku Zafrul

Malaysia

Activist charged over alleged desecration of Hindu sacred object at Langkawi temple site

Malaysia

Mechanic sentenced to 20 years and seven lashes for rape and armed robbery of teenager