A Penang Umno Youth leader has challenged Lim Guan Eng to either quit as chief minister or admit that he had lied in claiming that the state government has not approved the conversion of land from leasehold to freehold status.

NONE The movement’s treasurer Aziaan Ariffin said he has Land Office documents proving that one site, on the sea front in Lebuh Farquhar, George Town, was converted to freehold status for commercial purposes.

This, he claimed, was effected under Section 197 of the National Land Code. The documentary evidence shows that Lim’s government had approved the conversion on May 25 and endorsed the decision on June 3 at state executive council meetings.

Aziaan claimed that state policy only allows the Land Office to extend the leasehold period for industrial and commercial land up to 99 years.

“The state policy disallows conversion of leasehold land to freehold status for industrial and commercial purposes,” he told a press conference today.

However, he said Lim had misled the last state assembly sitting in August by claiming in a written reply that the state government has not approved any conversion of land, and that it is waiting to bring up the matter with the National Land Council at the year’s end.

This was in response to Pulau Betong assemblyperson Muhamad Farid Saad’s question on approval of applications for change of land status from leasehold to freehold between April 2008 and June 2009.

However, confusion arose following recent news reports that PDC Heritage Hotel Sdn Bhd - in collaboration with YTL Corporation Bhd - would build a luxury condominium and seafood restaurant on Lot 408, Section 19, next to the E&O Hotel.

“It is unbecoming of a chief minister to lie publicly and mislead the assembly on the issue. If he cannot admit that he lied and misled the assembly and people of Penang, he should resign,” Aziaan, the Balik Pulau Umno Youth chief.

He is now considering lodging a report with the Malaysian Anti-Corruption Commission.

‘Reports misleading’

Lim has evaded questions from reporters over the issue on several occasions. He was not available for comment today as he is in Bahrain and Iran on an investment mission.

However, in a press statement issued on Nov 8 by Lim’s press secretary Cheong Yin Fan, the Chief Minister’s Office had expressed regret over “certain misleading reports about government approvals granted on large tracts of land reclamation and hill development projects”.

NONE It did not touch specifically on the Lot 408 land conversion, but stressed that no approval has been granted for any major land reclamation or hill development projects.

The only approvals, she said, have been for reclamation or hill development projects accepted by the previous BN state government. These cannot be cancelled because heavy compensation would have to be paid.

Cheong said Lim (left) would address the queries when he returns or during the upcoming state assembly sitting from Nov 30.

Yesterday, state opposition leader Azhar Ibrahim had urged Lim to be honest and transparent over his government's policies and administration.