May 4, 2011
PDC criticised for problems with Pulau Jerejak project
An Opposition member took the Penang Development Corporation (PDC) to task for failing to use its minority shareholder power to steer the Tropical Island Resort (TIR) project on Pulau Jerejak in the right direction.
Datuk Arif Shah Omar Shah (BN-Seberang Jaya), in an oral question to Chief Minister Lim Guan Eng, chided the latter for “trying to show power” in getting back the land premium owed by UDA Holdings Bhd to the state government.
“UDA holds a 51% stake in the project while PDC has 49% so why didn’t it do something earlier on to get TIR back on track?
“That’s the problem when an accountant (Lim) with a dendam laknat against (former Chief Minister) Tan Sri Dr Koh Tsu Koon refuses to exercise the minority shareholder power.
“Pulau Jerejak can be an iconic development bringing long-term gains for tourism,” he said during the morning session of the state legislative assembly yesterday.
Lim replied that even if PDC had a 49.9% share in the company, it was pointless.
“I know the general election is coming and you (Arif Shah) want to show that you can be a potential candidate but we both know minority shareholders can’t do much.
“I used to work in a bank so I know that based on its finances, a company like TIR would never even qualify for a loan.
“For us to invest more now would be throwing good money after bad,” he said, adding the state government was willing to take over the project if UDA returned the land.
Otherwise, UDA would have to pay all monies owed.
In March, Lim said the state government had asked the state legal adviser to start legal proceedings against TIR to recover the RM10.6mil in land premium and interest for 32.3ha of land in Pulau Jerejak.
The land title was issued to TIR after the first instalment of RM2.4mil was paid on Oct 10, 2002.
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