Come clean on Bayan Mutiara deal, Penang CM told

Penang Umno Youth has accused Chief Minister Lim Guan Eng of covering up details of the Bayan Mutiara land sale when the developer has 'revealed' that this was done by way of a negotiated tender.

It said the recent statement by developer Ivory Properties Group Bhd, which had won the bid for the 103 acres of land, clearly shows that the deal was not done via an open tender.

Shaik Hussein Mydin (right) , who heads the Umno wing, claimed that the developer had "negotiated" the terms of payment with the state government, as the latter had reduced the payment period from five to eight years.

This proves that the deal was carried out via a negotiated tender, while Bursa Malaysia had also indicated something similar, he said.

"You cannot ask a thief ‘Did you steal?’. Somebody is trying to hide something. He should not try to spin this any more," said Shaik Hussein.

Lim has been at loggerheads with Umno leaders who have questioned the deal extensively. He has also volunteered to retire from politics if they can show proof that the deal was not inked via an open tender.

Last week, state Umno liason committee chief Zainal Abidin Osman had revealed documents purportedly showing that the land was sold via a negotiated tender. He urged Lim to step down as chief minister.

In a statement last Saturday, Ivory Properties had said it had  participated in the open tender exercise called by the Penang government, which closed on Dec 31, 2010.

The company said it had originally put in a bid to purchase the land at the highest tender of RM240 per sq ft to be paid over eight years.

However, following the award of the tender, the state government had imposed an additional requirement of reducing the term of payment from the original eight years to five years.

Shaik Hussein said the best thing fo Lim to do now is to get an independent body like Transparency International to evaluate how the land was sold, and whether this was through a negotiated or open tender.

‘Hold new tender exercise’

The Youth wing also asked why only two companies had put in a bid to buy the land and whether this meant that others already knew that they had no chance to participate in the tender exercise.

It is learnt that the other company, whose bid was rejected, is the Umno-linked SP Setia Bhd.

Shaik Hussein suggested that a better price could be obtained for the prime land if a new tender exercise is held.

"We have never questioned the open tender system. What we are concerned about is the post-process. For example, who reviews the application and what critieria do they use to review the companies?"

Shaik Hussein demanded a "concrete" answer from Lim as to the location of plots of land for a mosque and school within the area which had already been approved by the state.

Umno, he said, will continue to push for a technical report as to why the land was sold only at RM240 per square foot (psf).

A nearby plot of land, measuring about 40 acres around Queensbay Mall, had been sold for RM420 psf by developer CP Land Sdn Bhd, according to media reports.

"Will Lim be transparent enough to publish this technical report in all the newspapers?" Shaik Hussein asked.