Malaysia

PCCC urges Penang CM to investigate PDC

PCCC said the land sale fiasco served as a revelation to the people, exposing the arrogance of the PDC

Updated 6 months ago · Published on 18 Oct 2023 7:29PM

PCCC urges Penang CM to investigate PDC
PCCC urged Chow to conduct an internal investigation into PDC and reshuffle the staff.

by Ian McIntyre

GEORGE TOWN - Chief Minister Chow Kon Yeow found himself under fire from various fronts despite sanctioning the move to scrap the controversial industrial land sale where a local business tycoon described him as “incompetent, ignorant and shameless.” 

Penang Chinese Chamber of Commerce (PCCC) life honorary president Tan Sri Tan Kok Ping told a packed press conference that Chow was not fit to perform his role as chief minister, raising the political temperatures in Penang.

He also urged Chow to conduct an internal investigation into PDC and reshuffle the staff.

Earlier, Chow reportedly revealed that there are some quarters out to oust him as the state's top executive even though he is just into his second and final term here.

Under the amended state constitution, the chief ministership is limited to just two terms, and Chow rose to prominence in 2018 after replacing his predecessor DAP chairperson Lim Guan Eng, who had also served two terms.

PCCC president Datuk Seri Hong Yeam Wah meanwhile, said the land sale fiasco served as a revelation to the people, exposing the arrogance of the Penang Development Corporation (PDC) for entering into a land sale with Umech Land Sdn Bhd without observing proper due diligence.

Hong said that based on credit ratings, the alleged party was incapable of financially executing the deal to develop the Batu Kawan Industrial Park II

The company had a debt of RM39.9 million and a gearing ratio of 215%, which suggests that the company had significant debt in relation to its equity, Hong claimed.

Hong also questioned how the land was given a 99-year leasehold status, which went against the 60-year lease normally granted for industrial land.

Earlier, Gerakan deputy president Oh Tong Keong said that PDC committed a serious error by entering into direct negotiation with Umech instead of sticking to the desired practice of open-tenders.

Oh said the way the deal was struck, it raised suspicions among the public that there exist elements of concealment in the project.

The 226ha deal was called off by PDC, citing the fact that Umech did not notify the state over the change of a controlling stakeholder after it emerged that Umech Land sold a controlling stake to the master city developer - Sunway Group Bhd.

Sunway had reportedly disclosed to Bursa Saham Malaysia that Umech Land, the company for which it has acquired some equity, had inked a joint development agreement with PDC to mutually develop the industrial park worth some RM3.5 billion. - The Vibes, October 18, 2023

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