The Penang government will expose a major land scam that has cost the state RM40 million in a White Paper at the coming legislative assembly sitting on April 29.

Deputy Chief Minister II P Ramasamy said the White Paper, titled “Tang Hak Ju land scandal report” covered the findings of a probe on Lots 954 and 955 in Mukim 20, Seberang Perai Tengah.

p ramasamy husam musa penanti by election ceramah 290509 05 Ramasamy ( right ) said the probe into the massive scam, which occurred under the previous Barisan Nasional government, was conducted after Pakatan Rakyat took over the state in 2008.

“We started a team to investigate the scandal under former DCM I Fairus Khairuddin,” he told reporters at Komtar today.

“After he resigned, the committee was handled by me, and after a year-long probe, we are now prepared to present the report to the coming state legislative assembly sitting,” he added.

Ramasamy said the scandal had a “great impact” ( pukulan hebat ) on the present state government as millions had been siphoned from state coffers.

He added that the state government was dissatisfied with an earlier probe carried out by the Anti-Corruption Agency in 2006.

During another probe under the Pakatan government, Ramasamy said, new findings into the financial scam were discovered and disclosed to the Malaysian Anti-Corruption Commission in Penang.

"However, I am not surewhether the MACC has carried out any further probe,” he said.

“But since this is a major land scandal, we have to present this White Paper to explain the matter to Penangites.”

The ‘real story’ behind the scandal

Ramasamy said he would present the ‘real story’ behind the scandal, the steps taken to probe the matter and why the state had  concluded it to be the “biggest land financial scandal” in Penang’s history.

Improprieties had allegedly taken place in the acquisition, conversion, development and transfer of the land title and, with the bulk of these allegedly taking place in Penang’s mainland.

Tang, a quarry operator, had applied to the state government for the land in Seberang Perai Tengah in 2002 to extract rocks for quarrying purposes.

His application was approved by the previous state exco after it verified with the Seberang Perai Tengah District and Land Office that the lots were owned by the state.

But the state later received complaints from the original landowners who found out about the deal.

Investigations by the state then found that the two plots were registered to the Hock Teik Cheng Sin temple and the Hokkien Hoay Kuan Province Wellesley Association.

The titles issued to Tang were then cancelled in 2004.

Tang sued the state the following year for losses and the High Court awarded him RM29.36 million, plus interests dating back to Jan 24, 2005.

Meanwhile, Chief Minister Lim Guan Eng, who was present at the same press event, said that it was “business as usual” for the Penang government, not following the example set by Prime Minister Najib Razak who has postponed this week’s cabinet meeting to campaign in Sarawak until Friday.

Sarawakian will go to their 10th state polls on April 16, and current news reports indicate that Barisan Nasional  is up for a tough challenge against Pakatan Rakyat in the state.

"We are not going to cancel any meetings, it is business as usual. Our programmes will run as usual,” he told reporters.

“I will later chair a meeting regarding the April 29 state legislative assembly sitting where we are going to discuss about the presentation of the white paper on the Tan Hak Joo land scam,” he added.