CM accused of misleading assembly

2009/11/01

By Audrey Dermawan audreymd@nst.com.my

GEORGE TOWN: A controversy is brewing over land conversions in Penang.

The state Barisan Nasional has accused Chief Minister Lim Guan Eng of lying to the people on the status of land conversion from leasehold to freehold.

Pulau Betong assemblyman Muhammad Farid Saad said Lim had misled the state assembly at the last sitting in August when he said there were no such conversions between April last year and June this year.

Farid said it was unbecoming of Lim, who constantly advocated transparency, to mislead the assembly and the people of Penang.

"We are wondering how many more land conversions have been approved on the quiet and what premiums were imposed."

Farid was referring to the question he posed to Lim on whether there had been any land conversions for development purposes during that period.

In his written reply, Lim had said the state government was waiting to present the matter to the National Land Council, scheduled to meet at the end of the year.

He also said the state government had yet to approve any application for land conversion.

However, documents show-ed that Lim's administration had given the nod to PDC Heritage Hotel Sdn Bhd to convert a 1.4ha leasehold plot in George Town to freehold.



The Business Times on Thursday reported that PDC Heritage Hotel would be building luxurious condominiums and an eatery on a seafront site adjacent to the 124-year-old Eastern and Oriental (E&O) Hotel in Lebuh Farquhuar here.

PDC Heritage Hotel is a joint venture between YTL Corporation Bhd (which holds 51 per cent stake) and Penang Development Corporation (49 per cent). Lim is also the PDC chairman.

The land, bordered by the E&O Hotel and St Xavier's Institution, was state-owned and had nine pre-war buildings. In 1996, it was alienated to PDC.

In 1998, PDC came under fire from activists when it demolished the 80-year-old buildings without local council approval.