Buck up, Chow tells PDC

GEORGE TOWN - Chief Minister Chow Kon Yeow has ordered the Penang Development Corporation (PDC) to find new ways to improve its policies on holding open tenders, requests for proposals and direct negotiations.

This follows the rescinding of the controversial land sale between construction giant Umech Land Sdn Bhd and PDC, after it was revealed that the contractor had at the last minute entered into a majority equity sale to master city developer - the publicly listed Sunway Group Berhad.

PDC claimed it was not notified nor consulted over the stake sale to a third party, while allegations continue to rock the authority over the below-market value sale and the lack of due diligence done on the company.

Chow told a press conference here that PDC needs to beef up measures in the areas of tenders and collaborations with the private sector to offer more clarity in the awarding of projects.

The senior management of PDC is bound by their key performance indexes (KPI) to drive the performance of the development arm.

"This involves their bonuses and higher wages so they will take their KPI seriously," said Chow, adding that there is always room to improve PDC's performance.

Chow defended the original steps undertaken to approve the leasehold sale but stressed that there are some areas which he cannot divulge due to the legal aspects following the decision by the PDC board, which he chairs to rescind the deal with Umech.

"We have sent a three-month notice to the company to inform them that we are cancelling the deal and we are waiting for their response. Hence, I am bound by some legalities."

There is a need to abide by the notice period accorded to the company, he said, adding that the board statement issued yesterday, is deemed satisfactory for now.

On the barrage of criticism by the Penang Chinese Chamber of Commerce towards his leadership, Chow said that PDC had originally replied to the queries by the chambers.

He considered the PDC reply to also represent him, as he was the PDC board chairman.

On why the change of company from the original partner - Umech Construction to Umech Land, Chow replied that it was the same company and directors.

At times, some companies opt for a special purpose vehicle (SPV) to be an enabler to the deal they are designing, said Chow.

Earlier, Chow said that the state was seeking to aid the organisers of the annual "Miaohui" Lunar New Year celebrations next year since they needed RM890,000 to oversee the event, which is now a staple show for the New Year festivities here.

Penang is trying to seek sponsors of about RM600,000 to help the organiser.

Held under the auspices of the Penang Chinese Clans Association Council, next year's celebration would be the 25th since it first began in 1999.

It will be held on February 18, next year where 12 roads in the Unesco World Heritage Site will be cordoned off to mark the cultural and heritage signature event.

There would be a diverse cultural performance involving the community from street shows to the celebration of the various Chinese dialects and ancestral culture.

Chow said that 20 organisations and clans would be part of next year's "Miaohui." - The Vibes, October 18, 2023.