Lim said the state government and PLB signed a RM1 billion joint development agreement for the rehabilitation and reclamation project in 2020, with the firm required to pay RM5 million in annual project management fees.

However, the DAP adviser said the company has only paid this fee once, in 2021, meaning it owes fees for four years starting from 2022.

“PDC’s patience in waiting more than four years without taking legal action is remarkable as legal action is normally taken against those renting PDC property if rent payment is missed after three months.

“The Penang chief minister (Chow Kon Yeow), as PDC chairman, has not explained why no legal action was taken to recover the RM20 million in project management fees.

“Neither has the former state executive councillor for environment Phee Boon Poh come forward, even though he played a major role in both the RM1 billion 84-acre rehabilitation project and the 70-acre reclamation project in front of Karpal Singh Drive,” the Air Putih assemblyman said in a statement.

The Jelutong landfill has been closed for years but remains a source of concern because of buried waste, leachate and possible gas emissions. The project is meant to remove or treat the waste and stabilise the site for future use.

However, residents and green groups have opposed the project’s reclamation component, saying it could affect the nearby Middle Bank seagrass bed and marine ecosystem.

In March, the environment department rejected PLB’s fifth environment impact assessment (EIA) report for the project, but Penang executive councillor H’ng Mooi Lye said the project has not been scrapped yet.

H’ng said the state government considered the project important because the old landfill had long-standing safety and pollution problems.

Chow recently said PDC would present its recommendations on the project at the next state executive council meeting.