Gerakan has questioned the financial health of the company that Penang Chief Minister Lim Guan Eng has appointed to manage the Bukit Jambul Country Club.

BJCC is operated by Island Golf  Properties Bhd (IGP), a subsidiary of the state-owned Penang Development Corporation (PDC).

The open tender to manage the resort was awarded to Taiyo Resort (KL) Bhd.

penang strengthen local democract and restore election forum 280210 mark ooi Gerakan political caucus secretary Mark Ooi (right) claimed that Lim was not “completely transparent” about Taiyo’s financial status, despite insisting that it has paid-up capital of RM5 million.

“(Lim) should explain the financial status of this company, since (he) has said the most important thing the award is based on (is) the financial status of the company, “ he said, showing reporters copies of the company’s financial statements.

Ooi, however, declined to comment as to whether he is suspicious of the appointment of the company, rather than L&L Golf Management which had been recommended by Lim’s harshest critic, Bayan Baru assemblyperson Zahrain Mohd Hashim.

Zahrain, the former IGP chair, quit PKR in February to become a ‘BN-friendly’ Independent.

azlan Lim’s refusal to endorse L&L is said to have irked him, resulting in animosity between the two and - as Lim alleged at the time - precipitating the latter’s resignation.

IGP, at a meeting chaired by DAP’s Bukit Mertajam MP Chong Eng, had recommended another company.        

“When the name of the company was sent for endorsement to PDC, it was turned down,” claimed Ooi, without revealing the name of the firm.

“I would like to ask the chief minister if indeed there was a rejection of the company rumoured to be  proposed by IGP, and I would like him to explain why it happened.”

Guaranteed returns

He further questioned Lim’s intention to take legal action against Taiyo if it does not deliver profits to BJCC as stated in the contract. The Penang CM had mentioned this after announcing the deal between Taiyo and PDC.

“I would like to stress that there is no need to take legal action against the company. Before the state enters into a contract with the company, it can ask for a performance bonus,” said Ooi.

        

Taiyo has guaranteed RM80 million in returns to IGP over the next 20 years.

IGP's profit after tax plunged from RM2.559 million in 2005 to a loss of RM1.799 million in 2006 and another loss of RM868,473 in 2007.

It was back in the black with profits after tax of RM730,160 and RM206,875 in 2008 and 2009 respectively.