Gerakan has demanded an apology from Komtar assemblyperson Ng Wei Aik for misleading the public on a certain clause in the controversial RM250 million subterranean Penang International Convention and Exhibition Center (sPICE) project.

NONE "When we claimed that its developer would be allowed to build 1,500 houses under various projects it is undertaking in Penang, he (Ng) rubbished it," said Gerakan state local government bureau chief Teh Leong Meng ( left ), referring to a newspaper report on May 6.

"Ng said he had checked with the Penang Municipal Council (MPPP) and there was no such clause included by developer Eco Meridian Sdn Bhd in its proposal," added Teh in a press conference at the lobby of the MPPP's legal office at Komtar's 17th floor today.

Teh asked Ng. who is Penang CM Lim Guan Eng's political secretary, to apologise to blogger Anil Netto who had highlighted the matter in his blog after attending a closed door meeting between NGOs, MPPP and Lim.

He added that Ng's denial had placed Netto's integrity on the line, which is why the former owes him a "sincere" apology now that it is revealed that the clause does indeed exist in the contract.

Teh indicated that Ng was probably trying to protect somebody, although he declined to specify who it was.

The project was priced initially at RM300 million, but had been slashed to RM250 million, which Teh said was due to "a lot of pressure from the Opposition".

NONE Teh, Gerakan state human rights and legal bureau chief, Baljit Singh and information chief Thor Teong Ghee ( right )and representatives from MCA and MIC were at the venue to view the concession agreement for the project.

The contract was signed on Aug 19 by MPPP and developer Eco Meridian, a wholly-owned subsidiary of SP Setia. The project is expected to be completed by 2014.

It is located at Relau and when completed, will see Penang boasting of the country's first underground exhibition centre.

The deal includes a 2.8ha public park, refurbishing, repairing and upgrading the Penang International Sports Arena and the Aquatic Centre as well as construction of a new hotel, retail outlets and a carpark.

Shocked at another clause

Meanwhile, Teh expressed shock at another clause within the agreement, related to the construction of 450 low and medium cost homes by the developer.

He said the developer was required to build the units at 650 sq ft per unit, which should not cost less than RM72,500.

According to the agreement, the state government will provide the land to the developer to build the said homes and the offer is valid for 20 years.

However, if the state fails to provide the 'free' land to the developer, this part of the deal is waived.

"This is (an) unusual (deal), and the developer is going to benefit from this clause, where the state provides the land and profits go to the developer," said Teh.

Baljit described the deal as "daylight robbery", saying that Penangites would have to pay one way or another for the mega-million deal.

"There are many restrictions placed on those who want to view the agreement, the public is not even allowed to photocopy it for their perusal despite the state government's talk of having a Freedom of Information Act," he lamented.

Half-way through the press conference, the Gerakan-led team was asked by an MPPP representative to stop their briefing and hold it outside the lobby.

Baljit was escorted out of the lobby before the party ended their event, saying they would hold another meeting with the press after finding out more details about the deal.

  Unaware of clause

When contacted, Ng said he was unaware about the clause which allows the developer to built 1,500 units of residential houses in Penang.

NONE "I am not a party to the deal. At that time, I didn't know about the clause, so I told the reporter that there was no such deal," he told Malaysiakini .

"I have checked with MPPP and also state executive member in charge of local government Chow Kon Yeow, who told me that the clause did not exist at that time," he added.

But Ng ( right ) said, now that the clause is in the agreement, and is available for public viewing and feedback, which indicates that the state government is "transparent and has nothing to hide".

He added that Gerakan need not go about trying to prove something as all the details were available for public scrutiny.