GEORGE TOWN: Chief Minister Chow Kon Yeow has reserved his comments on the Penang Development Corporation (PDC) Board's decision to terminate a joint venture agreement with UMECH Land Sdn Bhd following calls to suspend the controversial sale of a PDC-owned land in Byram, in the Seberang Prai Selatan district to the company.
The PDC chairman said they would await a response from the company before commenting further.
"We will leave it to the company to decide. We cannot preempt their actions.
"The PDC will communicate the Board's decision to the company in accordance with the agreement. We will wait," he said.
Earlier today, the Board had decided to terminate a joint venture agreement with UMECH Land.
PDC, in a press statement, also gave UMECH Land a three-month notice based on clause 19 of the PDC - UMECH Land Sdn Bhd Enterprise Agreement.
The PDC Board said that a change in the majority of UMECH Land's equity structure that resulted in a change in the party controlling and leading the project without notifying and obtaining PDC's official approval was a serious matter that could not be tolerated.
The PDC Board said, after the termination of the contract, PDC has been instructed to advertise widely using various channels of mass media through a Request For Proposal (RFP) for a proposed collaboration with the PDC to advance the Batu Kawan Industrial Park (BKIP) 2.
Chow again reiterated that direct negotiations for PDC land was nothing new.
He said all industrial land was negotiated, with interested parties expressing their intention before deciding on the reserve price.
"But in this case, it is quite a big land.
"So, that is why, we think the call for RFP is to ensure accountability and transparency.
"Who knows? We may get a better price for the land," he added.
Chow hoped there were people who might still be interested despite the challenges faced.