The Penang state executive council has decided to cancel the Penang BN offer to purchase the Taman Manggis land for public housing.

State BN chief Teng Chang Yeow had offered to purchase the 1.1 acre plot along Jalan Zainal Abidin for RM22 million.

NONE Chief Minister Lim Guan Eng (left ) said the offer, which expired on Dec 4, has been rejected because of the BN failure to comply with four key factors.

"Insincerity and no genuine commitment by Teng and BN Penang to build public or low-cost houses for rent," said Lim, in a statement today.

This, he added, followed a contradictory statement by Taman Manggis Phase II Development director Khoo Boo Soon that affordable housing costing RM400,000 will be built there.

Khoo, a former acting director with the Penang Municipal Council, had bee ticked off by Teng for the surprising announcement which was not endorsed by BN.

Two conditions not complied with

Lim said the BN had also failed to comply with two of the state's conditions to fulfil the offer, including changing the directors and shareholders of the BN-friendly development company.

He had wanted the company directors to include the names of Teng and other BN leaders as the state and Penang BN had agreed to enter into the deal.

"They have also failed to revise upwards the paid-up capital for housing development companies to the required amount set by the Housing and Local Government Ministry at 3% of Gross Development Value," Lim said.

"They also failed to pay the remainder 99 percent or RM22,183,227 by Dec 5, despite an extension of 1 month given to Teng and the BN," he added.

Lim said the Penang BN's refusal to pay in full the purchase price of the land even though they claim to already have the money, questions the leaders' honesty and commitment in building public housing.

The BN, instead, had refused to make good the payment as it was awaiting the state to issue the coalition a sales and purchase agreement after paying earnest money of one percent.

The Penang BN Youth has also been pressuring the state to come clean on the allegations that it had sold the land twice - to Kuala Lumpur International Dental Centre and to the BN.

In his various responses, Lim had said that BN should pay up the remaining monies to the state and it will hand over the land title to the coalition.

On this issue of the land allegedly being sold twice, Lim had also explained that the title of the land had not been transferred to KLIDC as it was still owned by the state government.

He added that the  state government is unable to sell the land to BN Penang without an "iron-clad guarantee and clear commitment" that the directors of Taman Manggis will not renege on their public housing promise.

"This lack of clarity is compounded by Teng and other BN leaders not being directors of Taman Manggis Phase II Development Sdn Bhd".

When contacted, Teng said that he has yet to receive any legal notification on the cancellation of the land offer.

"We will seek legal redress to deal with the matter," Teng, the Gerakan secretary general said.

When asked if BN would give up the offer, Teng shot back "Why should we give up when it concerns housing for the poor?".

When told that Lim had accused BN of not being sincere in acquiring the land, Teng batted back the blame to the CM.

"He is not sincere, not us. He knew he had received full payment from KLIDC and yet he made the offer to us. That action itself is insincere," added Teng.