Deputy Chief Minister II P Ramasamy said the piece of land in Jelutong was owned by the ministry.
He said the ministry had “refused to budge” despite many attempts to hold talks.
Ramasamy said the state government was willing to compensate the federal government for the land or replace it with another piece of land in the state.
“While other federal ministries have shown the willingness to negotiate with the state government, the transport ministry is very reluctant.
“The stumbling block I think is the minister, Liow Tiong Lai, himself. He apparently seems to have a powerful axe to grind against the Penang government, for reasons best known to him.
“Even if he has a personal dislike for the Penang government, surely he should have the larger interests of the people of Penang at heart,” he told reporters in Komtar today.
Ramasamy is also one of four members of the state Land Committee.
In relating his experience contacting Liow, Ramasamy said he was given many excuses, with Liow’s officers telling him he was on holiday or too busy to respond.
He said after writing to Liow on Dec 15, an officer said the ministry would take it up with the Penang state secretary.
“I am not sure whether this reply is a genuine one or an administrative attempt to put the matter in abeyance.
“Liow was so keen to meet Chinese officials building the tunnel during his recent trip to Beijing … he has little or no time to meet the Penang delegation to resolve the land matter that is stalling the completion of the three-paired roads.
“He might pretend that he is busy, but he surely cannot disassociate himself from other MCA leaders who want nothing but a ‘pound of flesh’ from the Penang government at any cost,” he said
The “three main roads” stretch from Air Itam to the Tun Dr Lim Chong Eu Expressway (5.7km); Tanjung Bungah to Teluk Bahang (10.53km); and Jalan Pangkor-Gurney Drive junction to Tun Dr Lim Chong Eu Expressway (4.1km).
The project is expected to begin next year.
It is part of the undersea tunnel project, a proposed 7.2km crossing which will connect George Town’s Pangkor Road with Bagan Ajam in Butterworth. It is scheduled to begin in 2023.
The tunnel’s feasibility study, often a topic of contention between BN and Penang government leaders, was reported to be at 95.9% in December.
The Penang government had said the tunnel was a low priority and could take off later after the three main highways are completed.
FMT is attempting to get Liow to comment on Ramasamy’s allegations.
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