The Penang state government will declassify the official minutes on the conversion of 3.5 acres seafront land in George Town from leasehold to freehold status, said Chief Minister Lim Guan Eng.

NONE In a statement today, Lim said he would propose to the executive council during its weekly meeting this Friday to declassify the exco and state land committee minutes on the decision to allow the land conversion.

Lim said the declassification was imperative for the public to know the background and the truth behind the decision to convert the land from leasehold to freehold to its owner the Penang Heritage Hotel Sdn Bhd (PHH).

"The declassification will allow the public to understand the state government’s genuine intention to revive an abandoned heritage site project in George Town.

"It's in line with the state government's CAT principles of competency, accountability and transparency, something which the previous Barisan Nasional government never advocated," he said.

"The declassification of minutes will give a clear picture about the state’s true intention and its lack of fear to reveal the truth," he added.

Lim criticised for 'not being honest'

Opposition BN leaders, including state legislative assembly opposition leader Azhar Ibrahim, have criticised Lim for not being honest and transparent about the PHH land deal.

They claimed that Lim had misled the assembly sitting in August when he gave a written reply that the state government has not approved any conversion of land from leasehold to freehold, and that it was waiting to bring up the matter with the National Land Council at the year's end.

Penang Umno Youth treasurer Aziaan Ariffin has even challenged Lim to either quit as chief minister or admit that he had lied in the assembly for claiming that the state government has not approved any land conversion.

NONE Aziaan claimed that he has the Land Office documents proving that one site, on the sea front in Lebuh Farquhar, George Town, was converted to freehold status for commercial purposes.

In the August sitting, Lim was replying to a written question by Pulau Betong assemblyperson Muhamad Farid Saad 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 PHH would build a luxury condominium and seafood restaurant on Lot 408, Section 19, next to the E&O Hotel.

Lim clarified that since Muhamad Farid’s question was more focused on state-owned leasehold land, the state Land and Mines Office had referred only to land owned under the Secretary Incorporated (SSI).

"Hence, so far SSI had not received any application for land conversion,” he said.

PHH, which is the owner of the 3.5 acres land, is jointly owned by Penang Development Corporation (PDC) (49%) and YTL Hotels & Properties Sdn Bhd (51%).

Did the CM mislead the house?

In an immediate response, Muhamad Farid dismissed the declassification of the minutes as irrelevant to him.

NONE "I did not ask him to declassify the documents anyway. It's Lim's prerogative to declassify the minutes and we leave the matter entirely to him," he told reporters at a press conference at the land site today.

He said the more important issue to him and Penangites was whether Lim had misled to the assembly sitting in August when he said the state government has yet to approve any application for land conversion from leasehold to freehold.

Muhamad Farid said all BN opposition assemblypersons would raise this issue again during the next assembly sitting, which begins at the end of this month.

He said the BN assemblypersons would refer the chief minister to the assembly's Rights and Privileges Committee if Lim was found to have misled the house with his replies.

Muhamad Farid added that Lim had also contradicted his own policy statement when his state executive council approved the land conversion on May 25 and endorsed the decision on June 3 at its meetings.

"Lim said the state government would first bring up the matter with the NLC at the year's end. However, he had approved this land conversion without referring to NLC, which is chaired by the prime inister.

"Why he was in such a hurry? Why can't he wait for NLC to make a policy decision?" asked Muhamad Farid.