Jerejak developer draws flak
Gerakan: Over RM1bil in overseas deals may have been signed
GEORGE TOWN: Over a billion ringgit in development projects on Pulau Jerejak may have been signed by a local developer with overseas partners, claimed state Gerakan acting youth chief Jason Loo.
He said overseas sources revealed that the developer had roped in foreign corporations.
Gerakan has found announcements in 11 websites that Penang-based developer Ideal Property Group had, in March, signed tripartite agreements with Chinese companies to build, among others, a bridge between Penang Island and Pulau Jerejak.
“These are websites of corporations, local authorities, trade associations and news portals in China. They show that Ideal had not only been planning but has signed agreements to develop the island,” Loo said in a press conference held outside the gates of the Penang State Assembly building yesterday.
According to one of the releases on the website of China Construction Fifth Engineering Division Corp Ltd, the company signed a RM1.276bil framework agreement for four projects – a condominium block, a business and retail centre, affordable housing apartments and a bridge between the two islands.
Loo said the release identified the signatory from Ideal as its chief operating officer Ng Tyan Ping.
“The agreement was signed at the Hunan-Asean Investment and Trade Promotion Conference held in the Chinese province on March 30,” he said.
Ideal Property Group CEO Datuk Alex Ooi could not be reached for comment.
The company had earlier said no overseas partners were approached to co-develop the project.
Loo asked why the state was “keeping the people in the dark about such a massive project?”
“This is unusual when government officials pride themselves on being transparent.
“Is the developer a ‘buddy’, so they are awarded the project without an open tender?” he asked.
Loo also wanted to know the exact dates for two events: the Bayan Bay reclamation project award to Ideal and the divestment of 49% share in Tropical Island Resort Sdn Bhd (TIRSB) by Penang Development Corporation to the developer.
TIRSB was founded in 1997 by UDA and PDC to develop Pulau Jerejak.
“Is it a coincidence that the same developer received the Bayan Bay and Pulau Jerejak projects? These two places are so near to each other,” said Loo.
At the state assembly, Opposition Leader Datuk Jahara Hamid (BN-Telok Ayer Tawar) felt there was an udang di sebalik batu (Malay idiom that means ulterior motive).
She said plans revealed so far were extensive, from 1,200 condominiums to the bridge.
“The original plan years ago was to have a resort and products which were eco-friendly. It should not affect the green and natural surroundings.
“I have also questioned when the island will be gazetted as a forest reserve,” she said when debating the state Budget yesterday.
In a press statement, Chief Minister Lim Guan Eng lashed out at his critics and blamed the previous state government for causing the 32ha to be awarded to TIRSB in 2001.
He also said claims by Penang Gerakan chairman Teng Chang Yeow that PDC rejected a joint venture offer to develop Pulau Jerejak in 2013 were untrue.
Teng said earlier that the joint-venture deal would have made RM220mil for PDC, but the corporation had chosen to sell its shares to Ideal for RM156mil.
Lim said the decision by TIRSB to appoint Q Island Development Sdn Bhd, a subsidiary of Ideal, to develop the 32ha was made by UDA Holdings, the majority shareholder of TIRSB.