Questions raised over varying payment figures for land plots

GEORGE TOWN: Penang Barisan Nasional is questioning whether the state government paid an extra RM113mil to the developer for the technical studies of the three paired roads project.

Its chairman Teng Chang Yeow said based on the value of RM1,300 per sq ft, the two plots totalling 5.67 acres (2.3ha) in Bandar Tanjung Pinang, Tanjung Tokong, could have fetched RM321mil.

Instead, he said, the state government paid RM208mil to Consortium Zenith Construction Sdn Bhd for completing the feasibility study, detailed design and Environment Impact Assessment (EIA) of the three paired roads.

“Chief Minister Lim Guan Eng said the RM208mil payment was done through two land swaps with a value of RM1,300 per sq ft.

“He said it was higher than the value given by the Valuation Department. It is also recorded in the state’s Public Accounts Committee report.

“Based on our calculation, the two plots of 5.67 acres (2.3ha), or 246,985 sq ft, could have fetched RM321mil although the amount to be paid is only RM208mil.

“A simple calculation shows that RM113mil seems to be unaccounted for,” he said during a press conference at the Penang Gerakan headquarters yesterday.

Teng claimed the Penang government had also been giving contrasting figures over the size of the two plots meant as payment to the developer.

He said Guan Eng had said the size of the two parcels was 3.67 acres (1.49ha) during a press conference at Komtar on Jan 11.

Teng said the figure differed from the one given by state exco member Lim Hock Seng, whose reply during the state assembly on May 19 last year was that the total land size was 5.67 acres (2.3ha).

“Hock Seng said both Lot 702 (1.49ha) and part of Lot 713 (0.81ha) were valued at RM135mil and RM73mil respectively, while the Chief Minister gave reporters a different figure with a value of RM1,300 per sq ft at a press conference.

“The difference is two acres,” Teng said, adding that part of the payment of RM208mil was made before the job’s completion.

He said Lot 702 was transferred to the developer on Feb 17, 2015, three months before the studies were completed in May, the same year stated in an answer to the state assembly.

One part of Lot 713 was transferred on March 22, last year.