This follows news reports that gave the impression that the Penang government had given the island away to a private developer.
Lim said it was the previous BN state government that gave away 80 acres of the land on the former penal island to federal agency Urban Development Authority (UDA) in 1997.
Lim said the Penang government back then had spent RM15.44 million in a holding company that controlled the 80-acre land, via the Penang Development Corporation (PDC).
PDC held 49 per cent while UDA held the controlling share of 51 per cent.
“It is ridiculous for MCA-owned The Star and Gerakan to claim that Penang has lost ownership of Jerejak Island entirely after the state, through PDC, sold its 49% share to an Ideal Properties subsidiary.
“It is not the ownership of the island that was lost, but ownership of 80 acres of Jerejak that was lost — not now, but in 2001.
“In 2001, BN and Gerakan betrayed Penangites by selling 80 acres of the island at RM12.95 million, when the market price was RM47.6million, thus making a loss of RM34.6million,” Lim said during a press conference at the state assembly here today.
Gerakan had recently slammed the Penang government for letting go of its share in Tropical Island Resort Sdn Bhd (TIR), a 51:49 holding company that used to consist of UDA and PDC.
PDC let go of its share with a profit of RM140.6 million recently.
Gerakan, quoting sources in PDC, said a similar share sale deal was reached in 2013. It said Lim’s government rejected the deal.
Gerakan had said if it had kept the deal, PDC would continue to keep its 49 per cent share in TIR and reap RM220 million in “guaranteed profit”.
The Penang government, however, said such an agreement did not exist.
Lim also criticised Penang Gerakan chairman Teng Chang Yeow for demanding that the Penang government gazette the entire Jerejak island as a forest reserve.
Lim said turning the entire island into a reserve was not possible due to existing developments that took place there under the auspices of the BN state government.
“If Teng had not been a state executive councillor, we can understand his ignorance when he said that you can gazette private land owned by TIR or even the private shipyard owned by Boustead.
“One questions Teng’s basic intelligence on whether we can just simply gazette the whole island, including privately-owned land, as a state park.
“The only way this can be done is by first acquiring private land, which would cost millions of ringgit, up to RM500 million.
“Will the BN federal government furnish us with the funds for this forcible acquisition? ”
Lim said his government had not approved any additional land in Jerejak Island for further development.
“After the 80 acres has been clearly demarcated and the Boustead shipyard, the remaining land on the 895-acre island shall be gazetted as a state park.”
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