FORMER Penang deputy chief minister P. Ramasamy has urged the state government to cancel the sale of a plot of land owned by the Penang Development Corporation (PDC) in Byram, Seberang Perai Selatan, to Umech Construction Sdn Bhd.

Ramasamy, who quit DAP before the August 12 state polls, said there must be provisions in the deal to let the PDC exit the agreement.

“I suggest both the PDC and the Penang state government undertake the unpleasant task of cancelling the land deal with Umech (Construction).

“It is simply not worth pursuing the present land deal that threatens to put to shame all the good work done by the Penang government over the last 15 years.

“Once the cancellation is done, action should be taken against individuals in the PDC, state government or (third-party entities) responsible for this shoddy mess,” he said in a statement.

Ramasamy suggested the PDC develop the land on its own instead of seeking private investors.

“It is not too late for the PDC and the state government to put an end to this land sale,” he said.

The land deal was mired in controversy after issues with the deal were revealed, including the choice of Umech Construction as a buyer and the plot’s subsequent sale to Umech Land, Sunway Bhd buying 70% of Umech Land shares a few days before the sale, and the price of the plot.

It was also revealed these issues were not part of initial discussions, and the Penang government and PDC had no knowledge of them.

Previously, Ramasamy, who is former Perai assemblyman, accused Chief Minister Chow Kon Yeow of making misleading statements about the land deal.

Chow came under fire over the sale after the Penang Chinese Chamber of Commerce questioned why the project was awarded via direct negotiations and why local companies were not considered.

Penang Gerakan and Penang Muda have urged Chow to clarify the matter.

Chow, in defending the land deal, said due diligence was done in choosing Umech Construction as the buyer. – October 15, 2023.