BN’s strategic communications (BNSC) deputy director Eric See-To said this was confirmed by Penang Chief Minister Lim Guan Eng who said the payment was made by transferring 3.7 acres of state land to the construction company in charge of the project at a value of RM1,300 per sq ft.
“While technically true that the payment was not in cash, it ignores the fact that payment has indeed been made by the Penang state government in the form of state land given to the contractors,” he said in a statement.
Yesterday, Lim denied claims that the Penang government had allowed a company to “pre-sell” RM3 billion worth of land given to it as payment for an environmental study on three roads.
He was referring to The Star’s report claiming that the state government had allowed a “special purpose vehicle” to “pre-sell state land rights worth RM3 billion despite a four-year delay in the construction of roads”.
He said the government had only given two pieces of land to Consortium Zenith as payment for an environmental study for the three major roads’ component, minus the undersea tunnel.
“We only paid RM208 million in kind (to the consortium). We do not have money, so we paid through a land swap.
“That payment was for the environmental impact assessment for the three roads. Not the tunnel.
“Otherwise, we have not paid a single sen to them,” Lim said.
Prime seaside freehold land at Seri Tanjung Pinang
However, See-To said the two pieces of land were prime seaside freehold land at the exclusive Seri Tanjung Pinang.
“The land payments have already been made despite the fact that the full RM305 million reports are yet to be completed and not a single road or tunnel construction has yet to start.”
He added that the Penang government had granted development approval for the first piece of land shortly after giving it to the contractors.
This had increased the development density to 156 units per acre from the previous 30 units, which in turn significantly increased the market value of the land, he said.
“As a result, sales and construction already started in 2015 on two 39-storey condominium blocks with a gross development value of RM800 million.
“The developers have gone on record to say they will make RM200 million in gross profits — a profit margin of 25%.
“If the land was indeed over-priced, then the developers would not have been able to develop a project of this value and with such a good profit margin.”
Urging the Penang government not to preempt or interfere with investigations by issuing statements that would confuse the people, See-To said the Malaysian Anti-Corruption Commission should be allowed to do its job.
“If there is nothing to hide, there is nothing to fear,” he added.
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