The chief minister has recently been involved in a long heated exchange with Penang BN chairman Teng Chang Yeow on the sale of land on the former penal colony.
Lim said Teng’s explanation that the holding company for the land was a “government-to-government joint venture” with a federal government agency was an attempt at hiding” the “cheap deal”.
Lim said the previous Penang government, via state agency Penang Development Corporation (PDC), had sold 80 acres of Jerejak to the Urban Development Authority (UDA) cheaply and also gave it controlling share.
He said the 51:49 share ratio between UDA and PDC in Tropical Island Resort Sdn Bhd (TIR) left Penang powerless to take major decisions, such as divestments or other major decisions.
“The BN state government in 2001 had approved the award of 80 acres of leasehold land for 60 years (expiring in 2062) in Jerejak Island to TIR at a price of RM12.95 million or RM3.71 per square foot (psf).
“In 2001, the market value of the 80 acres on Jerejak Island was RM47.6 million or RM13.65 psf.
“In other words, the BN state government sold the land nearly 4 times cheaper or at a loss of RM34.6 million to TIR. This is 73% below the market price,” Lim said at a press conference at the state Legislative Assembly today.
Lim and Teng have been at loggerheads ever since PDC divested its 49% share in TIR to a private developer.
Teng called the deal a losing one as it was the last stranglehold Penang government had on the island.
Teng had dropped a bomb on Lim’s government, accusing PDC of letting go of a similar deal in 2013, with a RM220 million “guaranteed profit”, while retaining its shares in TIR.
Lim said his government was powerless to do anything as it was not the controlling stakeholder.
In a press statement yesterday, Teng said the BN government did not “sell the land” but had merely started a government-to-government joint venture company with UDA to jointly develop the island.
“That was a government to government joint venture. It is the present DAP state government that has sold the entire shares to a private developer — thus effectively selling the land in Jerejak!”