Penang Gerakan chief Teng Hock Nan has demanded that the state government stop hounding him over an alleged land scam or he would be forced to sue for defamation and he is very confident of winning.

The DAP-led state government has consistently accused Teng for failing to take proactive measures in a deal that turned sour when he was part of the state government in what is now known as the Tan Hak Ju land scam.

Speaking to reporters today, Teng said that he was reluctant to sue the government, despite being confident of winning, because ratepayers would have to bear the cost of the state government losing the suit.

"We believe we can win and compensation will come from the state coffers which belongs to the people... At this stage, we put aside this idea but don't push us too far," he warned.

Tan, a businessman, had sued the state government for not processing his land application properly. It was alter found that the application was canceled because their said land already had an owner.

White Paper tabled

Deputy Chief Minister II P Ramasamy, who tabled a White Paper on the matter during the last state legislative assembly sitting, claimed that "Tan was offered compensation of RM1.8 million and an alternative plot but the deal didn't fall through."

Teng, the former Kebun Bunga assemblyperson, said it was Tan who asked for the amount over the failed land deal in 2004.

But Ramasamy blamed Teng for not following up on the matter as the government could save up to RM40 million in legal fees, adding the case should not merely be described as a "technical mistake or negligence".

Teng had also been slammed for allegedly not cooperating with the state government's probe into the matter.

Meanwhile, Teng urged the state government to focus on collecting more information and evidence to set aside the RM40 million High Court award to Tan.

'Focus on appeal, not me'

Instead of continuing to portray the incident as a "scam when there is no scam ", the state government should initiate appropriate action to set aside the case or reduce the quantum of the award, he said.

He insisted that the White Paper tabled and adopted in the recent state assembly sitting had stated that there was a "technical mistake and negligence or an irresponsible action on the part of two government officers".

He added that according to the document, new evidence showed that Tan could have prior knowledge to the land ownership which he did not disclose to the previous state government.

Hence the state assembly decided to re-file the case to set aside the High Court award which amounts to RM40 milion including interest.

"Tan's case is still pending in court, there should be more efforts to fortify the state's case so as to protect the people's interest," he said.