Nation

Penang government told to come clean on RM9bil state funds pumped into development project

GEORGE TOWN: The Barisan Nasional Strategic Communications (BNSC) team has demanded that the state government come clean as to why a private property developer has a stake in a RM15 billion project and not state-owned Penang Development Corp (PDC).

BNSC deputy director Datuk Eric See-To Choong said questions are being raised with many asking why the state government had not allowed the PDC to have a stake in the Wellness City of Dreams project, especially since the project is being built on state land.

He said, as widely reported, the state government is spending RM9 billion of state funds to help ensure the success of the Wellness City of Dreams project.

See-To also provided links as proof of the various projects announced by the state government such as the Gurney Wharf project, the eight-lane road in front of this development along Gurney Drive that will cost between RM300mil to RM400mil, and the 19.5km Pan Island Link highway that will connect this development to the Penang International Airport in a project that will cost RM7.5 billion.

"Questions have been raised as to why the Penang government is seemingly benefitting a 100 per cent private property developer and not PDC," he said in a statement today, adding that PDC has seen its profits and cash reserves plummet in recent years, so much so that it needed an emergency RM609 million soft loan from the state government early this year.

See-To claimed that his sources had provided him with information that showed the state government allowing the Penang Tunnel Special Purpose Vehicle (SPV) company to pre-sell 50 acres of state land on Gurney Drive for RM2.83 billion to the listed company.

"The ceremony was witnessed by Chief Minister Lim Guan Eng, in which the sale forms part of the Wellness City of Dreams project.

"This project, which will be 100 per cent privately owned in a joint venture between the listed company and the Penang Tunnel SPV company, was announced to have a GDV of RM15 billion," he added.

See-To said the Penang government had, over the past months, was unable or afraid to reply to his past statements on the controversial Penang Tunnel project.

"Many Malaysians find this surprising as the DAP-led state government had said they practice transparency and would normally be quick to defend, but this time round, such questions on a RM6.34 billion project using public money, has been met with deafening silence.

"Nevertheless, I will continue to ask DAP questions even though they are unable or afraid to answer," he said.

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