White Paper on cheap land sales by the previous BN government will be issued
The Penang State EXCO at its meeting on 12.9.2012 has agreed to issue a White Paper on cheap land sales of at least 4,000 acres by the previous BN government based on the probe by a special EXCO Committee headed by Penang State EXCO member for Local Government and Traffic Management Chow Kon Yeow.
The terms of reference decided by the State EXCO for the probe on cheap land sales are as follows:-
Identify cheap land sales conducted without open tender, price sold and to whom it was sold;
Analyse the sale process as well as whether the land sold was developed according to the original purpose of sale’
List out the weaknesses and the financial opportunity losses forgone incurred by the state government as a result of the cheap land sales as well as recommend measures to ensure that such wrongful practices do not recur.
Cheap land sales or even land given for free by BN government came into focus when BN alleged that the sale of 1.1 acre piece of land in Taman Manggis for a private hospital project to promote medical tourism in Penang, was sold below market value even though it was conducted by open competitive tender. The highest bid offered was accepted at RM 232 per square feet which was higher than the value given by Jabatan Perkhidmatan Harta dan Penilaian, under the Finance Ministry.
Not just BN but Gerakan has lost all honour and credibility when BN Penang Chairman Teng Chang Yeow can not prove his claims that four of my EXCO members, my political secretary and myself had personal interest in the hospital project. Unlike the over 4,000 acres sold by the previous BN state government, the present state government only sold over 100 acres of state land to raise funds to build 18,000 units of affordable housing.
Can BN Explain Why PR Land Sales Of Over 100 Acres Can Raise RM 1.1 Billion Whereas BN Cheap Land Sales Of 4,000 Acres Is Only Half Of RM 1.1 Billion?
When limited land sales by PR state government under open competitive tender can being questioned, BN’s cheap land sales of over 4,000 acres must be fully answered. Can BN explain why PR land sales of over 100 acres can raise RM 1.1 billion whereas BN cheap land sales of 4,000 acres is half of RM 1.1 billion? Chow Kon Yeow would look into the more than 4,000 acres of state land or identify even more land that were sold cheaply or without open competitive tender such as:-
a) In the Tanjong Tokong Reclamation, under Agreements dated 1990 & 1999, the developer was given the right to reclaim and develop 980 acres of land off Tanjong Tokong at the price of RM 1 per square foot!(RM 42.7 million)
b) 750 acres of land in Batu Kawan was sold in 2004 at between RM3.05 to RM 4 per square feet.(RM 112,058,100)
c) As for the Jelutong Expressway, under Agreements dated 1997, 2002 & 2003, the developer was given the right to reclaim 325 acres of land in exchange for constructing the Jelutong Expressway at an estimated cost of RM300 million and cash payment of RM25.4 million. In other words, the total cost is RM325.4 million for 325 acres or the cost of reclaimed land at Jelutong Expressway is RM 1 million per acre or over RM 20 per square feet. What’s more the developer can pay RM 25.4 million over 10 years from 2005 up to 2015 – surely a record for length of payment period.
d) 80 acres of prime land in Pulau Jerejak was sold to Urban Development Authority(UDA) without open tender on 15 January 2001 for a lease period of 60 years at only RM 3.72 per square feet.(RM12.9 million)
e) 1,600 acres of reclaimed land off Butterworth was given to Rayston Consortium(Butterworth) Sdn Bhd or Rayston for free. Rayston only had to pay RM 50 million for relocation of squatters and build a highway which they are recovering the cost through toll collections.
f) 18.7 acres land in Midlands Court and over 4 acres in Prangin Mall was sold by tender but not to the highest bidder. Instead for both sites, the 2nd highest bidder was selected.
g) 500 acres of reclaimed land awarded without open tender for the now aborted Penang Outer Ring Road(PORR) project.
