Barisan Nasional has questioned the sale of the Bayan Mutiara land to a private developer by the Penang Development Corporation (PDC), asking whether it will serve the needs of the people.

NONE State BN chairperson Dr Teng Hock Nan said the parcel of land next to Pantai Jerejak, south of the Penang bridge, was reclaimed by the previous government for the purpose of benefitting the people from all sectors.

The land belonged to the people, Teng said, and it should serve their needs, including housing, business opportunities and government facilities.

"The responsibility is not about getting the best value from the sale of the land.

"It is to serve the needs of the people from all walks of life, as well as to provide a check-and-balance on land and property prices in Penang," Teng said, when commenting on the issue.

12,000 affordable houses

The land was sold to developer Ivory Properties Bhd for RM1.07 billion.

The company, according to Chief Minister Lim Guan Eng, has banked in an initial payment of RM20 million to PDC, with the balance to be settled in five years.

Based on this income, Lim recently handed over a cheque for RM500 million to PDC to carry out the development of affordable housing in Batu Kawan, where a ground-breaking ceremony for the construction of 12,000 houses was held today.

selangor dap congress 2011 lim guan eng However, the DAP secretary-general has been criticised for the deal, and his enemies accuse him of selling the plot of land at a very low price of RM240 per square feet.

Lim explained that the reserve price for the land (in the open tender) was only RM200psf, and the selling price of RM240psf was the highest bid the PDC could obtain. The valuation price for the plot was less than RM100psf.

Kota Belud MP Abdul Rahman Dahlan had asked Lim to live up to his promise to be open and transparent and reveal details of the land sale.

Showing proof of the land price, Lim insisted that the deal was inked in a "transparent and accountable" manner via an open tender.

‘PDC should develop the land'

But Rahman pointed out that Bursa Malaysia had clearly stated that the price was derived from negotiation between the developer, Lim and PDC.

Teng, who is state Gerakan chief, said the state owned many parcels of land and could provide a "check-and-balance" in cases where the cost of private land and property escalated.

"The PDC should take up the responsibility to develop the piece of land in Bayan Mutiara," he said.

"There is a similar project called the D Residence on an adjacent piece of land, which was also carried out by the PDC and which benefits needy groups," Teng added.