Penang Chief Minister Dr Koh Tsu Koon has been criticised for allegedly "washing his hands off" a dilemma faced by about 300 people who had paid more than RM9mil in membership fees for an exclusive yacht club which was not built.

At a press conference today, the affected buyers' legal adviser Cheah Kah Peng urged Koh not to "hide behind the maze and veil" of a pending civil court case on the matter.

"He is in one of his denial syndrome mode. The least he can do is come out with a full report on the matter," said Cheah, who is also Penang Keadilan deputy chairperson.

"After all his signature is on the agreement signed between Penang Development Corporation (PDC) and the project developer," he added.

RM270m project

Bayan Marina Yacht club, located at the south-eastern foreshore of Sungai Nibong district, was part of a RM270mil development project which was suspended in March 1998 due to the economic downturn.

As the project was supposed to be completed by 2000, the 291 affected buyers who lodged a police report Wednesday said they felt cheated and are demanding for the return of their money with interests.

But Penang Chief Police Officer Othman Talib was quoted in the media yesterday as saying that the police had already investigated the matter and found that it was a "breach of contract rather than cheating".

Although an extraordinary meeting was held on Oct 29 over the matter and the company had offered to pay back RM9,000 over a period of five years, the "measly" sum was considered unsatisfactory as the buyers had paid RM35,000 each for membership fees.

It was also stated in the minutes that the 11,994 sq metre site was no longer suitable for the operation of a marina and yacht club.

Many of the buyers claimed that the only reason why they signed up for membership was because the PDC, where Koh is chairperson, held a 30 percent stake in the Bayan Bay Development Sdn Bhd, the project developer.

In an immediate response to the issue on Thursday, Koh said several club members had served legal notices, which has now become part of a court proceeding, to the project developer.

"The matter also involves a court-convened meeting on the Bayan Bay project's revival scheme. So it is best for the court to make a decision on this", he said.

Want money back

Meanwhile, several buyers present at the press conference said they had waited "too long" for the matter to be settled, saying they are prepared to march up to the CM's office if there is no forthcoming answer to the problem.

Lim Mooi Lian, 53, a teacher and one of those who signed up, said all she wanted was her money back.

"Is that too much to ask for? I will be retiring soon and thought that I could spend my twilight years enjoying facilities at the club," she added.

On a related issue, Cheah also questioned why the club members were only given one vote during meetings between the state corporation, developer and buyers.

He said the members would be outnumbered during the meetings and accused the state of failing to protect the buyers' interests.

Cheah also challenged Koh to respond to allegations that the 99-year lease site, which is state land, designated for the club has been converted to freehold.

The project developer, Bayan Bay Development Sdn Bhd, was unavailable for comment.