Press Statement by Cheong Yin Fan in George Town on Wednesday, 17^th February 2010:

"Lim ready to face legal action by Zahrain" - False and misleading report by Bernama

I refer to the false and misleading report by Bernama today (attached below) which claimed that "Penang Chief Minister Lim Guan Eng is ready to face legal action for implicating family members of Datuk Zahrain Mohamed Hashim in the RM40 million tender to manage Bukit Jambul Golf Resort(BJCC)".

The Penang Chief Minister had never mentioned any family members of Datuk Zahrain when rebutting personal attacks made by Zahrain. The Chief Minister believes in replying with facts and not stoop so low with personal attacks involving family members. The Chief Minister had clearly said was that his relationship with Datuk Zahrain deteriorated after he refused to accept Zahrain's and Island Golf Properties Bhd(IGP)'s recommendation to award a RM2 company with a tender worth RM 40 million to manage the Bukit Jambul Golf Resort.

If Zahrain wants to sue, Zahrain can do so. Zahrain can not run away from the fact that he recommended a RM 2 company for the RM 40 million tender. The Penang CM rejected the recommendation and was supported by the PDC Board that to give a RM 2 company a RM 40 million tender would make a complete mockery of the concept of open tender. Further the RM 2 company has no track record as it was formed only two months before the tender was called.

The Penang Chief Minister had reminded Zahrain that Pakatan Rakyat can not follow the bad habits of BN in awarding tens of millions of ringgit worth of contracts to a RM 2 company. Even a corrupt BN dare not now practice granting a contract to a RM 2, what more Pakatan Rakyat. If Zahrain wishes to sue, then the facts and documents are on our side to prove that the PDC Board rejected Zahrain and IGP's recommendation to give the management rights of BJCC to a RM 2 company.

Clearly awarding a contract to a RM 2 company is not CAT-compliant. In the interests of Competency, Accountability and Transparency, the Penang Chief Minister has said that he is willing to lose friends and gain foes. I hope that Bernama will make their corrections immediately or else withdraw their false report.

BERNAMA REPORT ON FEBRUARY 17, 2010 17:46 PM

Lim Ready To Face Legal Action By Zahrain

PENANG, Feb 17 (Bernama) -- Chief Minister Lim Guan Eng is ready to face legal action for implicating family members of Datuk Zahrain Mohamed Hashim in the RM40 million tender to manage Bukit Jambul Golf Resort.

He said Zahrain was unhappy for losing the tender put in by a company formed two months before tender was called in Sept 2008.

"It is up to Zahrain to sue or not. We have enough proof and are willing to take the risk for the sake of a clean government," he said when commenting Zahrain's legal threat for implicating his family memebrs in the tender.

Lim said their ties soured after a company supported by Zahrain failed to get the tender to manage Bukit Jambul Golf Resort.

"I am willing to lose a friend rather than award the tender to an unproven company that lacked credibility," he said at a Penang DAP Chinese New Year open house here Wednesday.

Zahrain, the former Penang Parti Keadilan Rakyat (PKR) chief, could not be reached for comments on his threat to sue Lim.

Commenting on the suggestion by state opposition chief Datuk Azhar Ibrahim that minutes of the 'Maulidur Rasul' celebration meetings be revealed, Lim said it was a trap adding he was not responsible for religious affairs.

Azhar who is also Penang Umno secretary challenged Lim to reveal minutes of the 'Maulidur Rasul' meetings on Jan 19 and Feb 3 so that the truth would be known.

Lim said the 'Maulidur Rasul' (Prophet Muhammad) procession and other religious programmes would proceed as planned.

* Cheong Yin Fan, Press Secretary to Penang Chief Minister