Insincerity of Teng Chang Yeow and Penang BN to build PPR the cause of cancellation of the purchase of 1.1 acre land in Taman Manggis
At its meeting yesterday, the Penang state EXCO decided to cancel the offer by BN Penang Chairman Teng Chang Yeow to purchase the 1.1 acre of Taman Manggis for RM 22,407,300 due to failure of compliance of 4 key factors:-
Insincerity and no genuine commitment by Teng and BN Penang to build PPR or low-cost houses for rent following a contradictory statement by Khoo Boo Soon that not PPR but affordable housing costing RM400,000 will be built;
Failure to change the directors and shareholders of BN’s housing developer company, Taman Manggis Fasa 2 Development Sdn Bhd, to include Teng and other Penang BN leaders as both the state government and Teng had agreed that BN Penang is buying the land;
Failure to revise upwards the paid-up capital for housing development companies to the required amount set by the Housing and Local Government Ministry at 3% of Gross Development Value.
Failure to pay the remainder 99% or RM 22,183,227 by 5 December 2012, despite an extension of 1 month given to Teng and BN.
Penang BN’s refusal to pay in full the purchase price of the 1.1 acre piece of land in Taman Manggis of RM 22,407,300 even though they claim to already have the money, questions the honesty and commitment of Teng and BN Penang in buying the land to build low-cost housing for rental (PPR). Teng’s commitment is doubtful when Khoo Boo Soon, director of Taman Manggis Phase II Development Sdn Bhd, announced on 29 November that the Taman Manggis land will be used not to build PPR but to build affordable housing costing RM400,000.
What guarantees can Teng make that Khoo’s original announcement of building RM400,000 housing will not be implemented? After all, Teng had earlier expressed anger and refused to co-operate with Penang UMNO for tearing Gerakan President Tan Sri Koh Tsu Koon’s picture but now works happily together with Penang UMNO even though there was no apology from UMNO.
The state government can not sell the land to BN Penang when there is no iron-clad guarantee and clear commitment that the directors of Taman Manggis will not renege on the promise to build PPR. This lack of clarity is compounded by Teng and other BN leaders not being directors of Taman Manggis Phase II Development Sdn Bhd.
BN Penang Chairman Teng Chang Yeow had wrote on 3.10.2012 that BN Penang have accepted the Penang state government’s offer to buy at RM 450 per square feet to build PPR. Teng had paid only 1% “earnest money” or RM 224,074 dated 3.10.2012 on behalf of BN Penang. On 4 October, I had replied to Teng that the remainder 99% or RM 22,183,227 must be paid within 30 days by BN Penang, which was then extended till 5 December 2012.
The state government had considered the land too small for public housing when the Housing and Local Government Ministry sets the minimum land area required is 2 acres. Instead an 11 acre site in Jalan S.P. Chelliah was chosen to build public housing- something not done before. The Taman Manggis land was chosen for a private hospital and sold by open competitive tender at RM 232 per square foot, which is above the Federal government’s valuation price of RM 212 per square foot.
Even though BN has claimed that the land was set aside by the BN state government in 2003 to build PPR, there was no public announcement in the newspapers from 2003-8. Why BN could not and had no money to build PPR from 2003-7 when BN was in power, but BN can find RM 22,407,300 to do so when they are in opposition?
Teng and BN Penang’s excuse for not paying up because the land had already been sold to KLIDC and that there is no sales and purchase agreement ignores the fact that no land title has been issued. How can there be a sales and purchase agreement without any land titles? And so long as the land title is not issued, the state government has the prerogative to sell the land to any other person. This land sale is a special case not by open tender, but directly granted to BN Penang by alienation.
The same situation applies when the Penang Port Commission paid in full the RM 15 million premium for the land on Swettenham Pier. In that case, there was also no sale and purchase agreement. Instead it was granted by alienation like the Taman Manggis land. As the land title was not issued, the state government can refund the premium to Penang Port Commission in full and hold on to the land title. Even KLIDC accepts this legal status and the sale of the Taman Manggis land to BN Penang by the state government, subject to a full refund of their premium paid and reimbursement of costs incurred.
Finally it is the insincerity and no genuine commitment from Teng Chang Yeow and Penang BN to build PPR is the main cause of the cancellation by the state government of the purchase of 1.1 acre land in Taman Manggis for RM 22,407,300.
