Press Statement by Lim Guan Eng in Penang on Sunday, 17^th August 2008: 

Koh Tsu Koon should explain special favours given to a private company, Business Focus Sdn Bhd (BFSB), that bought over PDC’s subsidiary company Penang Shipbuilding Corpotation Sdn Bhd (PSC) and its land in Pulau Jerejak, which resulted in PDC losing at least RM 9 million  

Former Penang Chief Minister Tan Sri Dr Koh Tsu Koon should explain why when he was the Chairman of PDC, he gave special favours to a private company, Business Focus Sdn Bhd (BFSB), that resulted in PDC losing at least RM 9 million without being able to get its land back. PDC sold shares in PSC to BFSB by an agreement dated 27th April 1992 for the price of RM29 million, which included land in Pulau Jerejak.

Instead of full payment being given over a normal period, BFSB were given until 6 years till 31 May 2008 to pay the RM 29 million. Unfortunately, BFSB defaulted on the final RM 9 million payment and to date has still not paid up this sum. BFSB has since being wound up. Most disturbing is that BFSB has now being sold and the land transferred to another company.

The whole transaction reveals not only the losses to PDC of at least RM 9 million but also irregularities, failure to follow basic financial and management procedures as well as lack of compliance with legal documentation to protect the interests of PDC. The failure of Koh and the top management of PDC to follow up and protect the interests of PDC is most disturbing and a glaring failure to perform their statutory duties as Chairman and Board members in a competent and professional manner.

The public has lost at least RM 9 million over the sale of PSC and the land in Pulau Jerejak and Koh should give a full explanation in the public interests to uphold accountability and transparency. Worse a preliminary investigation revealed that BFSB enjoyed special favours not given to other companies, and Koh is responsible to explain how the public benefited and why he gave such preferential treatment.

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* Lim Guan Eng, Penang Chief Minister Penang & Development Corporation Chairman (PDC) & DAP Secretary-General