Penang Gerakan today questioned why the plot of state land on Peel Avenue, which was recently sold to Island Hospital Group for a RM2 billion expansion project, was transferred to Chief Minister Incorporated (CMI), allegedly based on "one man's" decision.

CMI, chaired by Lim Guan Eng, was set up after 2008 to handle investment, tourism and heritage matters. 

Gerakan acting youth chief Jason Loo asked whether such sales is a normal procedure, as it was not the case during the previous state administration under former chief minister Koh Tsu Koon. 

“When the state government was under Gerakan, prior to 2008, all sales of state-owned lands must be vetted by a Land Committee, comprising several state executive councillors (exco) and state assemblymen.

“All sales of state-owned land must be recommended to the state exco meeting for final approval, and it would be a 10 exco members’ decision (whether to sell or keep the land),” he said. 

“However, under the current leadership (DAP), the sale of Penang-owned land, is solely decided by only one man, the chief minister, via the CMI,” Loo alleged.

Loo asked if a “one man decision” can lead to corruption, asking why was the land transferred to CMI, and when did it happen, before it was sold to Island Hospital Group.

“For all land sale under CMI, which account did the sales proceeds go to? Was it the CMI or any other account? How did CMI spend the profit generated from all land sales under CMI?” Loo asked.

Loo was referring to  Lim’s remark that the Island Hospital expansion was a foreign direct investment (FDI), and therefore, was not subjected to the open tender process.

Lim had said Penang has conducted RM38 billion worth of contracts under the open tender system. 

The 6.4 acres of Peel Avenue land was sold to the hospital for RM156 million, on a 99-year lease, Lim noted.

“Normally FDI is only limited in certain areas liked the Free Industrial Zone in Bayan Lepas; you cannot simply claim any land as medical tourism zone and then use that as excuse to sell the land,” Loo said.

“Peel avenue wasn't zoned as medical tourism usage before this. This is the problem when you allow only one person to decide (for the state),” alleged Loo, training his guns at the chief minister.

“You should identify a zone for medical healthcare and spell out the offer, while seeking for other potential players. What you are doing now has denied the opportunity of other potential investors to invest in the land in question,” he added.

“I will continue to keep track of the Peel Avenue land sale issue, and point out necessary concerns, and question the state government about them”.