PDC can’t dic­tate terms on UDA’s of­fer: Lim

The Sun (Malaysia) - - SUNBIZ -

How has your pre­vi­ous em­ploy­ment ex­pe­ri­ence aided your cur­rent po­si­tion? I’ve worked in dif­fer­ent com­pa­nies, in­dus­tries and jobs, from sec­re­tar­ial, sales (tied agency) and to where I am to­day. It (chang­ing jobs) used to worry my dad but I find it use­ful. I’m able to un­der­stand the op­er­a­tional, sales and mar­ket­ing and fi­nan­cial plan­ning as­pects of each in­dus­try. All these have helped me when I took of­fice here.

What have the high­lights and chal­lenges been dur­ing your ten­ure at FPAM? High­lights: Co­op­er­a­tive and com­mit­ted mem­bers from GE­ORGE TOWN: The Pe­nang De­vel­op­ment Cor­po­ra­tion (PDC), the state de­vel­op­ment agency, as­serted that it was UDA Hold­ings Bhd (UDA) that brought in Q Is­lands De­vel­op­ment Sdn Bhd (Q Is­land) to pur­sue a buy­out of­fer on PDC’s stake in Trop­i­cal Is­land Re­sort Sdn Bhd (TIRSB) for RM156 mil­lion.

Pe­nang Chief Min­is­ter Lim Guan Eng said as UDA was the ef­fec­tive owner of TIRSB, with 51% ma­jor­ity con­trol, PDC could not do any­thing with­out UDA’s con­sent.

“Un­like PDC, UDA can sell its shares with­out PDC’s con­sent. It is ridicu­lous for BN (Barisan Na­sional) and Ger­akan to claim that PDC can dic­tate terms to UDA with only 49% con­trol,” Lim, who is also PDC chair­man, said in a state­ment, here yes­ter­day.

On Satur­day, Pe­nang Ger­akan ques­tioned the Pe­nang gov­ern­ment’s

What ad­vice can you of­fer to en­trepreneurs/youths who want to start their ca­reer/own busi­ness? There are no short­cuts and free lunches. You have to put in ef­fort and have pa­tience. Things will come but some­times de­ci­sion to sell PDC’s 49% shares in TIRSB to Q Is­land, a sub­sidiary of Ideal Prop­erty De­vel­op­ment Sdn Bhd (Ideal).

State Ger­akan chair­man Teng Chang Yeow said al­le­ga­tions that the PDC had ac­cepted UDA’s of­fer to sell its stake in TIRSB to Ideal were not true.

PDC, in a state­ment is­sued on Fri­day, said the state de­vel­op­ment agency had ac­cepted an of­fer by UDA to sell its stake in TIRSB to Ideal for RM156 mil­lion.

PDC gen­eral man­ager Datuk Rosli Jaa­far said UDA had brought in Ideal to jointly de­velop their project and also buy out PDC’s 49% stake in ac­cor­dance with PDC’s con­di­tions.

TIRSB, a joint ven­ture be­tween UDA and PDC, which holds 51% and 49% stake, re­spec­tively, was ap­pointed by Bes­tari Hospi­tal­ity Man­age­ment to op­er­ate the re­sort in Pu­lau Jere­jak in 2004.

Last Thurs­day, Pe­nang Ger­akan ques­tioned the state gov­ern­ment’s fu­ture de­vel­op­ment on Pu­lau Jere­jak.

The chief min­is­ter said TIRSB had in­curred losses of RM40 mil­lion as at end of 2015, and was no longer fi­nan­cially vi­able and, there­fore, PDC agreed to the sale of 49% stake in TIRSB.

Lim said the state gov­ern­ment took eight years to de­ter­mine mea­sures to pro­tect the rights of Pe­nang res­i­dents over Pu­lau Jere­jak be­fore fi­nally se­cur­ing the trans­ac­tion that was fair and favourable.

With the deal, he said, the state gov­ern­ment would re­coup RM4.4 mil­lion in loans and RM15.44 mil­lion in­vest­ment by sell­ing its stake for RM156 mil­lion.

“We also dis­posed of our 49% stake in a loss-mak­ing com­pany, TIRSB, with RM40 mil­lion losses, to se­cure a profit of RM140.6 mil­lion that is nearly 10 times over the ini­tial in­vest­ment,” he added. – Ber­nama

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