Press Statement by Lim Guan Eng in George Town on Saturday, 13^th February 2010: 

Zahrain has quit all posts in PKR and left PKR why has he still not resigned from IGP as Chair and Director? 

Bayan Baru member of parliament Datuk Seri Zahrain Mohamed Hashim's reasons for leaving PKR is clearly due to his self-admitted private interests and personal unhappiness over my refusal to fulfil his requests in the Island Golf Properties Sdn Bhd(IGP). Zahrain had begun his statement outlining his reasons for quitting all positions in PKR and becoming an independent MP by repeating his false allegations that he was removed as Chairman of IGP even though I have immediately rebutted yesterday that this is not true. PDC has informed me that no letter has been sent by either PDC or IGP to any director of IGP, including Zahrain of any changes. Zahrain has been the Chairman and Director of Island Golf Properties Bhd since 9th July 2008.

Zahrain is clearly unhappy with me for refusing to accept his and IGP recommendation to approve a RM 2 company to operate and manage Bukit Jambul Golf & Country Club. PDC Board meeting on 10 February 2009 rejected Zahrain and IGP's recommendation that the RM 2 company be selected. Instead the PDC Board agreed with my recommendation that a fresh open tender be called.

I made a recommendation for a fresh open tender for the management of BJCC on two important reasons. One, to allow a RM 2 private company to win the tender for running BJCC, that involves expenditure of tens of millions of ringgit, would make a mockery of the meaning of open tender system. Two, the RM 2 company had no track record of running a golf club and was established on 29 Sept 2008. The RM 2 company was established a mere two months before the tender, clearly with the sole intended purpose of bidding for the tender in December 2008.

I had refused to heed requests to follow the recommendation by Zahrain and IGP to select the RM 2 company. Instead I had insisted on full compliance with the PDC Board's directive that a fresh open tender must be held in line with the CAT principles. The fresh open tender exercise was carried out last year with 7 interested applicants.

The PDC Board decided on 9 February 2010 meeting to select a company that offered a combined value of more than RM 40 million to BJCC over 10 years. The company selected has a track record and most importantly its paid up capital is not RM 2.

The question now that since Zahrain has quit all posts in PKR and left PKR why has he still not resigned from IGP as Chair and Director. Why has he not done the honourable thing by also quitting as Chairman of IGP when he can quit from PKR? By failing to do so, is this the private interest that Zahrain is talking about? Zahrain should know that he was appointed on the basis he is PKR MP. Now that he is no longer PKR MP would he resign honourably.

*Lim Guan Eng, DAP Secretary-General & Penang Chief Minister; Member of Parliament for Bagan