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

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