Penang hails special audit for Pulau Jerejak
Penang Chief Minister Lim Guan Eng wants a speedy probe into the alleged RM30 million scandal involving the controversial Pulau Jerejak redevelopment project.
Penang Chief Minister Lim Guan Eng wants a speedy probe into the alleged RM30 million scandal involving the controversial Pulau Jerejak redevelopment project.
The project has reportedly caused a RM19 million loss for the state-owned Penang Development Corporation and another RM10.6 million is said to be owing to the state in land premium charges since 2004.
Lim
(right)
said the state executive committee at its meeting this morning welcomed the statement by Public Accounts Committee chairperson Azmi Khalid on the possibility of a
special audit
into the project by the auditor-general.
Lim, who is DAP national secretary, expressed hope that the probe would help the state recover the RM30 million in losses.
"We hope the audit can be done as soon as possible, probably after Chinese New Year, which falls on Feb 3 and 4," he told reporters today.
"Penangites want to know where the RM30 million has gone from 1992 until 2008, when this scandal is said to have taken place."
Lim said the Urban Development Authority (UDA) does not merely own the company - Tropical Island Resort - which manages the project, but also has a stake in the land on which it sits.
He lamented that the state government has not received any payment for the land, although UDA had obtained the grant for it.
"The state government cannot do a single thing as we do not even have shares in the project... we can only demand that debts due to us are paid back," he said.
Public interest
Yesterday, Azmi said the project has hogged headlines and that it would be of public interest if the auditor-general looks into the matter.
Azmi (
left
) conceded not knowing "head or tail" about the matter and said he may request the auditor-general to carry out a special report.
He also said he wanted to know if the project involved federal government funding or state government funds.
Lim and former Penang Chief Minister Koh Tsu Koon have been trading barbs over the matter, as to who should be held accountable.
Koh has insisted that Lim should take full responsibility for the deterioration of the Pulau Jerejak facilities, while Lim retorted that it was Koh himself who had allowed the project to be taken over by UDA.
Meanwhile, Pantai Jerejak assemblyperson Sim Tze Tsin has urged the state to halt the joint UDA-PDC project as it is causing a huge loss to the state coffers and to Penangites.
"It does not make sense to further develop the island... please stop the bleeding," pleaded Sim, who is also PKR Bayan Baru chief.
"The previous state government under Koh's leadership had made several wrong decisions on Pulau Jerejak... the first mistake was to give 'all usable' land to UDA."
There are four phases of development under the joint venture project, with the Tropical Island Resort being the first phase.
"The second, third and fourth phases include luxury houses with a private marina and medical tourism projects, but these are considered 'white elephant' projects which the PDC should stop funding as they bring no benefit to Penangites," Sim (
right
) said.
He said the second "major wrong decision" by the previous BN government was to approve the building of water storage tanks on the northern part of the island.
Pulau Jerejak his now earmarked as a state park and should be developed along the lines of eco-tourism, said Sim.
"My suggestion to the state government is to acquire a controlling stake in the development from UDA, which is currently struggling to upkeep the resort," he added.
"UDA is not an expert in running resorts and hotels. It should focus on its founding objectives, which are related to urban development."


Are you sure you want to delete this comment?
This action cannot be undone.