PENANG People’s Association (PPA) lodged a report today with the Malaysian Anti-Corruption Commission (MACC) over the state government’s decision to lease a 2.6ha piece of land to a private hospital.

PPA chairman Huan Cheng Guan said the group wanted MACC to investigate the Lebuhraya Peel land deal, which he claimed was “shrouded in secrecy”. 

“We all know the state has been selling land since Lim Guan Eng became chief minister in 2008.

“Last week, I challenged Lim to reveal the sales and purchase agreement for the Lebuhraya Peel land. I gave him a week to do so, failing which, I will lodge an MACC report.

“I hope MACC will take action, as this is a matter that involves the interest of Penangites,” the former Gerakan vice-president told reporters this morning outside the Penang MACC headquarters.

Last month, the Penang government announced that the Lebuhraya Peel land had been leased to Penang Island Hospital for 99 years for its RM2 billion expansion. The land is across the road from the hospital.

The land is being leased to the hospital for RM156 million, which Lim said was RM8 million more than the market value of RM148 million. The lower value was based on a valuation by the Finance Ministry’s Valuation and Property Services Department. 

Lim said the project would have an economic spillover effect of RM7 billion and was an economic game-changer for the state, which was establishing itself as a medical tourism destination.

He also said when completed, the project would give Penang the largest private hospital in Malaysia, with 1,000 beds and provide some 2,000 jobs.

For huge projects with investments from abroad, like this hospital expansion, Lim said open tenders were not the norm. He likened it to a foreign direct investment.

Huan, a former Gerakan MP for Batu Kawan, said the state should have called an open tender for the land, and not leasing it out via direct negotiations.

“I am surprised, disappointed and shocked when the Lebuhraya Peel land, which is worth hundreds of million ringgit, was secretly sold to a foreign company,” he said.

He also claimed that the state lost some RM30 million by leasing the land at RM156 million.

“The land was valued at RM148 million in September 2015. The deal with the hospital was inked in December 2016.

“The hospital has paid a deposit of RM30 million, and has two years until the end of 2018 to seek a licence from the federal authorities for the hospital expansion.

“For the period between September 2015 to December 2018, the state is not charging the hospital interest on the outstanding payment. At 8% per annum, the state is losing RM30.28 million,” he said.

Huan also questioned the state on whether it had informed the Valuation and Property Services Department of the Lebuhraya Peel land use when the valuation was made.

He also questioned the increase in density, zoning for the area and whether nearby residents were told of the proposed hospital expansion plan. ­ – June 1, 2017.