He said this happened after the Penang government was allegedly “caught lying” that the Gurney Drive seaside land only cost RM457 psf by MCA deputy president Wee Ka Siong.
“This is an obvious tactic by the Penang government hoping to divert attention to 1MDB so that it can avoid answering or debating Wee on the Penang tunnel scam where RM22 million was already paid in an attempt to stop corruption investigations.”
Wee had challenged Penang Deputy Chief Minister II P Ramasamy to get him a piece of land on Gurney Drive for RM475 psf.
Wee said that few people, including himself, believed the insistence by Ramasamy that the cost of the land in Gurney Drive — used as payment for the tunnel project — is only worth RM475 psf and that the state government should not be blamed for appreciation in land value.
Ramasamy had allegedly accused Wee of not giving an objective analysis of the Penang tunnel project.
Wee said that if Ramasamy could get the land for him, MCA would be willing to donate half of the profits to a charity to education.
Wee had claimed Penang people could lose RM20 billion if the project were to start.
He claimed this amount includes the actual project cost of RM6.34 billion, RM3 billion in toll collections, RM9 billion in associated projects and RM2.2 billion in loss of land value appreciation.
Countering Wee, Ramasamy said he would like to buy land in Kuala Lumpur for the price paid by 1MDB for the TRX land in Kuala Lumpur.
In his statement today, See-To said there were key fundamental differences between the tunnel project and TRX transactions “which I am surprised that the Penang government does not seem to understand”.
He said among these were:
1. The below-market-value Penang land was transferred to a 100%-owned private company. The TRX land was transferred to a 100% government-owned company.
2. No relocation cost will be borne by the developer in the Penang tunnel case whereas 1MDB has to pay for all relocation and compensation cost for existing residents on that land.
3. The Penang private company can spend its own sweet time to let its prime land appreciate in value and profit from it as it is only required to start construction of the tunnel 10 years after signing the contract.
However, in the case of 1MDB, it is asked to start work immediately to create jobs and economic benefits in order to build Malaysia’s financial hub as well as the world’s biggest Islamic finance hub.
4. The Penang government will be spending RM9 billion of the state money to enhance the 100% privately-owned land.
In the case of 1MDB, it is a condition of the sale that it has to pay for the RM3 billion in infrastructure costs, including the underground highways leading out of the TRX project.
5. The chief beneficiary of the Penang project is the 100% private tunnel special project vehicle (SPV) company. On the other hand, the chief beneficiary of the TRX project is a 100% government-owned company.
“The differences are so striking that I fail to understand why the Penang government does not see this.
“No one will believe the Penang government that prime seaside land at Gurney Drive only costs RM457 psf today,” See-To said.
He hoped the rakyat will understand what is involved in both projects.
Let’s debate on 1MDB, tunnel project, Guan Eng tells MCA chief