Call for PAC probe into controversial Penang land sale


Noel Achariam

Penang Chief Minister Chow Kon Yeow is urged to come clean on the sale of Penang Development Corporation-owned land in the Batu Kawan Industrial Park 2 to Umech Land Sdn Bhd. – The Malaysian Insight file pic, October 23, 2023.

PENANG’S Public Accounts Committee (PAC) could look into issues surrounding the sale of Penang Development Corporation (PDC)-owned land in the Batu Kawan Industrial Park 2 (BKIP2) to Umech Land Sdn Bhd, Penang Warisan chairman Jeff Ooi said.

The former Jelutong MP said an independent inquiry could be conducted by PAC to address the issues and clear the air on the deal.

“Penang Chief Minister Chow Kon Yeow could call for a domestic inquiry, instead of an internal review, on the PDC management team involved in the land sale,” he told The Malaysian Insight.

“If there is any wrongdoing, the matter could be brought to the attention of the Malaysian Anti-Corruption Commission.”

Ooi was responding to a statement by Chow, who has directed PDC to prepare a working paper to review the sale process for projects involving its land.

Chow said this was a measure to improve PDC, especially how it handles land sales.

“We welcome any party that wants to give suggestions to improve the state government or its agencies, including on how to improve land sales and purchases by PDC,” he said.

“PDC management has been instructed to prepare a working paper to review the land sale process for projects that will be implemented on PDC land because we want to improve it.”

Chow, who is also PDC chairman, said the working paper must be completed as soon as possible to be presented to the PDC board in a few weeks.

Last week, PDC terminated its collaboration agreement with Umech Land via a three-month notice.

Ooi said the state government has to immediately play its part by getting PAC to handle the issue to provide check and balance.

“The state government has to come clean on what had transpired in the land deal,” he said.

“Why is it only acting on the issue when the public and Penang Chinese Chamber of Commerce (PCCC) raised it?

“Why enter into the contract in the first place? Why did Chow and PDC make the decision to cancel the contract after they were queried?”

Various parties, including PCCC, have questioned the sale of 223.6ha in BKIP2 in Byram.

Ooi said even former Penang deputy chief minister P. Ramasamy had raised the matter.

“Chow, as custodian of PDC, should be fully accountable in compliance with both corporate and public governance benchmarks,” he said.

Universiti Teknologi Malaysia lecturer Mazlan Ali says the Penang chief minister’s commitment to addressing the PDC-Umech Land deal shows that there is check and balance in the development of the state. – UTM pic, October 23, 2023.

Check and balance

Universiti Teknologi Malaysia senior lecturer Mazlan Ali said land issues must be scrutinised because they involve the state and public.

“This needs to be looked at in more detail as all issues should be addressed by the state to show transparency,” he said.

“I would like to praise Chow’s commitment to addressing this issue, to show that there is check and balance in the development of the state.

“All issues should be handled with care for the benefit of the people. It’s important that there is transparency in all projects.

“We believe the state government will address the matter so that there is no conflict.”

University of Tasmania’s James Chin said the state government should carry on with its review to address the issue.

“Open tenders should always be made public for full transparency. There is nothing complicated about this (issue),” he said.

“So we just have to wait for the review to come out. The only issue is, this could have damaged the reputation of Penang being one of the corruption-free states.

“But that is also not an issue because it (state government) is self-correcting and taking measures to address the issue. So most people are pleased with that.” – October 23, 2023.



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