GEORGE TOWN – Chief Minister Chow Kon Yeow will convene a Penang Development Corporation (PDC) board meeting next week to seek an amicable solution to the controversial industrial land sale with Umech Construction Sdn Bhd here.
Addressing the issue after his former deputy chief minister II P. Ramasamy had yesterday called for the project to be suspended pending a re-evaluation of the deal, Chow, who is the PDC board chairman, said he will discuss it in a board meeting.
Two former PDC directors Ramasamy and Datuk Seri Lee Kah Choon had sought to distance themselves from the project after claims of irregularities were alleged by the Penang Chinese Chamber of Commerce (PCCC) here.
PDC had already briefed the state executive councillors about the sale of the 226ha land in April, Chow told a press conference at the UOB building here.
“The (then) state exco members have taken note of the explanation given by PDC, and the matter will be raised by the board of directors next week for a decision.”
Pressed on the matter, Chow said that it was for the PDC management to clarify and reassure the board over the matter.
Umech, a firm specialising in construction, was the interested party in securing the Byram Industrial Park off Batu Kawan on the mainland, although the area is also near the state’s main landfill in Pulau Burung.
Earlier, the company signed a memorandum of understanding with PDC at the Dubai International Exposition to indicate its willingness to pursue the project to develop the barren plot into the next industrial park for Penang.
However, PCCC reportedly claimed that the land deal was quoted at below the market value.
It also questioned why the development authority had chosen to directly negotiate with Umech instead of using the open-tender practise, which is part of the state’s competency, accountability and transparency policy.
Chow insisted that the board meeting would present the best platform for the issue.
Chow had attempted to explain the deal last week, but it ended with both Ramasamy and Lee issuing a joint statement, saying that they were unaware that the deal went through on a direct negotiation basis and the alleged below market valuation sale.
Ramasamy, who was part of the PDC sub-committee over the deal, questioned how Umech Construction had then sold the land to its holding company Umech Land Sdn Bhd, in which master developer Sunway Group subsequently held a 70% stake.
The chamber also claimed that Byram land was valued at RM80 per sq ft, but it was sold at RM26.53 per sq ft to Umech.
The deal has received widespread attention with Gerakan deputy president Oh Tong Keong, saying that Penang in the past had only leased land and not outright sold it due to an acute shortage of public land here.
Warisan Penang chapter chairman Jeff Ooi said that there is reason for the Malaysian Anti-Corruption Commission to investigate the deal.
“Warisan represents the conscience of the people here rather than relying on the politics of expediency, so there is much to investigate and much to explain,” he said.
Former PKR executive councillor Datuk Abdul Halim Hussain also preferred to keep mum over the issue, although it was reported that he had overseen the agreement signing between Umech and PDC in Dubai. – The Vibes, October 12, 2023
