PCM vice-president Huan Cheng Guan said although the Penang government had said the RM609 million loan to PDC was to expand its landbank in Seberang Prai, the returns from the land sale were adequate to purchase more land.

“We are of the opinion that the returns from the land sale can be used to buy more land. Why do we need a loan? The RM1.7 billion is not enough?”

Huan also asked why in certain land sales, the state government was “ultra flexible” with repayment terms, with some stretching for years.

Recently, China Press reported that PDC had received RM1.74 billion from land sales from 2008 to 2016.

Quoting a written reply by Chief Minister Lim Guan Eng to Pulau Betong assemblyman Farid Saad at the state assembly, the land sales were made through open tenders and credited directly into PDC’s account.

Lim said the only piece of land, sold to Ivory Properties group, was paid directly to the state government’s coffers. It was not indicated which land this referred to.

Lim also revealed that RM61.6 million was obtained from sale of land belonging to local authorities, that is the Penang Island City Council and Seberang Prai Municipal Council. The returns from the land sale were funnelled to the respective councils.

The China Press also quoted Lim as saying that PDC’s biggest source of income came from selling land. Other sources of income were from the sale of houses, rent collection, dividends, service tax and investment profit.

Lim was also reported by the Chinese daily as stating that PDC had generated RM3.4 billion in revenue.

PDC general manager Rosli Jaafar could not be reached for comments at the time of writing.