Penang Deputy Chief Minister 2 P Ramasamy has been issued a legal notice for raising allegations of a conspiracy in the Tang Hak Ju land issue.

In the legal notice dated Nov 26 sent by Lim Kean Siew legal firm, Tang gave Ramasamy five days to reply, failing which he would consider taking legal action against the DAP leader.

Speaking to reporters at his office in George Town today, Ramasamy said he had referred the notice to his lawyers, Karpal Singh and RSN Rayer for further action.

kampung buah pala penang p ramasamy meeting 120609 04 "My lawyers would respond to the notice in the next couple of days," he said.

He said in the notice of action, Tang had accused him of making unsubstantiated allegations with an ulterior motive and to gain political mileage.

Ramasamy denied both allegations.

"As far as I am concerned, I only revealed findings of the special exco committee. I did not accuse anyone as a criminal or cheat.

"My statement was not defamatory or slanderous as claimed by Tang," he said.

Last Tuesday, Ramasamy lodged a report with the Malaysian Anti Corruption Commission (MACC) Penang office claiming that fresh evidence had revealed that Tang could have been aware that the land belonged to the association and not to the state from the very start.

The deputy premier's allegations contradicted Tang's court affidavit.

Ramasamy, who has handed over the evidence to MACC for further investigation, said he made the allegations based on evidence shown to the committee by the landowner, Penang United Hokkien Cemeteries Association, during the internal inquiry in July.

He said initially the state government thought that it was an oversight on the part of the officers from the state Land and Mines Office. But the association's evidence showed that there was an intention to deceive from the start.

State sued for RM40 million

Tang had sued the state for RM40 million in damages for selling the 4.3ha land to him.

On Feb 19, the Penang High Court ordered the state government to place a deposit of RM14,678,135, or half of the RM29,356,271 in compensation due to Tang in his lawsuit relating to the botched land deal.

Ramasamy said besides calling on the MACC to probe into the fresh evidence of an alleged conspiracy, the state government was also seeking to reduce the quantum of the court-ordered compensation.

"The state government would not want the taxpayers' money to go down to drain," he said.

Last Wednesday, state Gerakan assistant secretary Goh Kheng Sneah had called on Ramasamy to lodge a police report immediately as well to supplement his MACC report.

In another development, Ramasamy said the state government has agreed to allow two Malaysian companies to conduct separate monorail track-test exhibitions in mainland Seberang Perai within the next one year.

However, he said that does not mean the state government has decided to introduce monorail transport in the state, adding that details of the exhibition projects were being finalised.

Although he declined to reveal in-depth details of the companies, he said the companies have track records in the monorail industry, including in Kuala Lumpur and South Africa.