The state government is planning a serious counter-attack against Penang Umno for trying to "stoke racial and religious sentiments" over the Bayan Mutiara mosque land issue.

Chief Minister Lim Guan Eng said DAP, PAS and PKR would go to every corner of Penang to tell the people about Umno's lies on the issue to the Malay Muslim community.

NONE Lim, who is also DAP secretary-general, justified his claim by insisting that Umno was racist because the party has only made a fuss about the alleged "disappearance" of a mosque land.

He said Umno had ignored the fact that there were also plots of land for places of worship for other religions, and he also rubbished claims by Umno that a 2006 layout plan of the 41.6ha Bayan Mutiara plot had been approved by the local council.

"That information is not complete. We have all the documents to prove that the mosque land has not disappeared, which we will release in court," Lim told reporters when visiting the newly-built state syariah court complex today.

Umno to be sued for defamation

Based on Umno's constant harping on the Bayan Mutiara mosque land allegations and aided by its media arms - TV3 and Utusan Malaysia in particular - Lim said the state has resolved to sue the party for defamation.

"These allegations are made to run down the state government, so it leaves us no choice but to initiate legal action against Umno," he said.

"We will go to every corner of the state to tell the rakyat how Umno has lied about the mosque land having 'disappeared'.

NONE "And to the non-Muslims and non-Malays, we will tell them how racist Umno is for not fighting for their causes," he stressed.

Penang Umno Youth leader Shaik Hussein Mydin ( left ) has told Lim not to label him a " racist " for questioning the state government on the sale of the mosque land.

Lim said the Bayan Mutiara developer Ivory Properties Group Bhd had yet to submit its plans for the site to the Penang Municipal Council.

He said Ivory Properties had also given an assurance that there would be plots for a mosque and a school as well.

He had earlier clarified that any development plan seeking MPPP approval would have to comply with municipal guidelines that make it compulsory for the developer to reserve sites for schools and mosques.

"However, such information is not carried by TV3 and Utusan. So with the help of PAS and PKR, we will spread the word around about Umno's malicious lies," Lim said.