The denial by Chief Minister Lim Guan Eng was to refute reports that the Penang government had transferred the un-reclaimed portion to the contractor or its nominees to build the City of Dreams project.
The Star reported that a political leader was told by a third party that the Penang government had pre-sold “20.2ha of state land on Gurney Drive to a listed company for RM2.38 billion”, to develop a project called Wellness City of Dreams.
Lim said his government had only paid in kind to the contractor for the study of the three main roads component of the project, through a land swap.
“Both Penang executive councillor Lim Hock Seng and I said that the Penang government had not paid a single sen for the undersea tunnel but had paid RM208 million for work done on the three road projects.
“And yet the Barisan Nasional media continues to harp on Hock Seng and me giving different figures.
“Payment was made by land swap at a net development value of RM1,300 per square foot, which is significantly higher than the current market value.
“The land swapped was not un-reclaimed sea land but existing land with a land title,” Lim said in a statement today.
In bullet points, he summarised the “lies” by his detractors on the infrastructure project:
· The state government has allowed a special purpose vehicle to pre-sell RM3 billion of state land to the contractor undertaking the project.
· Sea land not yet reclaimed has been transferred to the contractor or its nominees to build the City of Dreams project.
· Money was paid out for work done on the undersea tunnel project.
· More than RM208 million was apparently paid out to the contractor, Zenith Construction.
· Penang executive councillor Lim Hock Seng contradicted figures announced by the chief minister, when in reality they are two different matters.
· The bidding process was flawed and claims made were excessively high.
The Malaysian Anti-Corruption Commission (MACC) has acted on a report by the political leader and has since arrested two top executives from the undersea tunnel and road builders.
MACC has also said it might arrest more people in connection with the project to assist in its probe.
Penang exco man breaks down costs for undersea tunnel, roads