Penangites lost every inch of land in Pulau Jerejak deal

 |Nov 15, 2016
Penangites have lost every inch of land in Pulau Jerejak when Chief Minister Lim Guang Eng and Penang Development Corporation (PDC), which he is the chairman, decided to sell off the 49% shares in Pulau Jerejak redevelopment project said Teng.
Penangites have lost every inch of land in Pulau Jerejak when Chief Minister Lim Guang Eng and Penang Development Corporation (PDC), which he is the chairman, decided to sell off the 49% shares in Pulau Jerejak redevelopment project said Teng.

Penangites have lost every inch of land in Pulau Jerejak when Chief Minister Lim Guang Eng and Penang Development Corporation (PDC), which he is the chairman, decided to sell off the 49% shares in Pulau Jerejak redevelopment project.

In making the statement, Penang Barisan Nasional chief Teng Chang Yeow said Guan Eng has chosen to blame everyone except himself over the sale of Pulau Jerejak.

“Guan Eng has been silent over the fact that he had earlier rejected a joint venture agreement between Tropical Island Resort Sdn Bhd (TIRSB) and Ideal Property Sdn Bhd. The agreement was inked in Dec 2013.

“However, the chief minister and PDC decided to sell PDC’s 49% shares in Pulau Jerejak to a subsidiary company of Ideal Property Sdn Bhd in 2016, according to PDC general manager a few days ago. Why and how come 3 years later, the initial rejection has become a successful deal?” asked Teng.

According to PDC sources, the joint venture inked in 2013 had a profit guarantee of potentially up to RM450 million with a gross development value of approximately RM1.5 billion. With 49% shares, PDC stands to make a profit of potentially RM220 million, stressed Teng.

“Why Guan Eng and PDC opted for RM156 million by selling the 49% shares and lost the rights over Pulau Jerejak?

“Instead, if the Chief Minister had approved the joint venture, PDC would stand to have a profit guarantee of potentially RM220 million and the rights over Pulau Jerejak remain intact.” he added.

 

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Ramani has been a writer and analyst for the past 10 years believes in fair news reporting.