The council is tasked with monitoring federal agencies’ movements.

Zainal Abidin said it was well aware of the “situation” in the case of the Nibong Tebal land matter faced by the Penang Regional Development Authority (Perda) for the past 30 years.

“Due to volatile land conditions and soaring costs, Perda has made a conscious move to stop the project. We know what they have gone through.

“Before any development can be carried out on the land, the new owners will have to conduct soil checks and treatments, hence the cheap price tag for the land,” he said at a press conference today.

Zainal Abidin, who is also Penang Umno chief, also welcomed the investigation into the land sale, saying a report had been lodged with the Malaysian Anti-Corruption Commission (MACC).

“In my opinion, there is no cheating in the land sale. And Perda is open to any sort of investigation by the MACC.”

Last week, Chief Minister Lim Guan Eng queried why the 3.4ha land at Kg Tok Keramat in Nibong Tebal was sold “cheaply” to a private company.

The land was sold for RM1.42 million last year despite an Inland Revenue Board land valuation giving it a RM16.6 million price tag.

The land was originally acquired by the government in 1986 for RM1.7 million to build affordable homes.

In defending the land sale, Perda Chairman Shabudin Yahaya said the land was sold cheaply because of various issues, including soil erosion.

He said if Perda carried on with the housing project, Perda would incur losses of up to RM10 million.

Some 100 homes already built on the site were also demolished, after they were abandoned for three decades because of the erosion problems.

Perda’s claim was rubbished by Lim who said the land could have easily been rehabilitated for RM5 million or less.

A Penang Exco member lodged a report with the MACC yesterday to investigate possible irregularities in the land sale.