PDC IS CASH-RICH‚ WHY THE NEED TO GIVE IT A LOAN‚ ASKS PENANG GERAKAN
RIGHT TO KNOW: ‘Corporation made RM2.5b from land sales’
PENANG Gerakan has demanded the state government to explain the need to give a massive loan to Penang Development Corporation (PDC) in next year’s state budget.
The party state treasurer Ng Fook On said PDC, as an investment arm, was already cash-rich after having sold its land to the private sector.
He said between 2011 and 2014, PDC had entered into agreements with four companies, making at least over RM2.5 billion.
He added that in 2011, it was reported that PDC had sold 102 acres of Bayan Mutiara land to Ivory Properties for RM1.07 billion.
“In 2013, 40 acres of Batu Kawan land were reportedly sold to PE Land for RM65.34 million.
“In 2014, 245 acres of Batu Kawan land were purportedly sold to Aspen Vision, which is 49 per cent owned by Ivory Properties.
“In another mega deal in 2014, PDC sold 470 acres of Batu Kawan land to Eco World for RM1.02 billion.
“From these sales of land, PDC is rich.
“Therefore, it is shocking that under next year’s state budget, PDC is given such a big allocation as loan, not to mention the allocation for the chief minister’s office,” he said here yesterday.
According to the state budget tabled by Chief Minister Lim Guan Eng on Tuesday, besides RM707.61 million allotted for the chief minister’s office and the state secretary’s office, RM609 million was allocated as a loan to PDC and RM30 million to Penang Water Supply Corporation (PBAPP).
Ng asked how the state government could give such a big loan to PDC, when the average loan in previous years was about RM5 million to RM6 million.
“We are aware that PDC has been selling land and it’s cash rich.
“So, why the need for the state government to give such a loan, which is 100 times more, compared with previous years?
“Also, why must the chief minister’s office and state secretary’s office need such a huge amount of funds?” he asked.
“Many parties have questioned the chief minister on the huge allocation to the chief minister’s office that saw an increase of RM546.02 million or 337 per cent as compared with this year.
“But, Lim has chosen to remain silent.
“The people have every right to know,” he said.