The Penang state government has extended the deadline for Barisan Nasional to pay up RM22 million for the Taman Manggis land.

NONE Penang chief minister Lim Guan Eng's ( right ) political secretary Ng Wei Aik said this extension is subject to the BN fulfilling two conditions.

He said BN should change the directorship of the company which intends to purchase the land.

Currently, one of the company's directors are former state town planning chief Khoo Boo Soon who recently came out of his retirement to criticise the Penang Municipal Council for hillslope development.

"They also have to top up the company's paid up capital of RM2 to a higher amount as per the requirement of the Housing Ministry," said Ng, who is also Komtar assemblyperson.

"They have to fill in form 5A so that we can alienate the land to them, and pay the RM100 processing fee to the Land Office. The payment should be made to the Northeast District Land Administrator, which is the proper channel.

"If these conditions are not fulfilled, the offer will lapse," he stressed.

It is learnt that Lim had held a meeting over the matter with the state executive councilors yesterday evening, and two - Abdul Malik Abul Kassim (PKR-Batu Maung) and Danny Law Heng Kiang (DAP-Batu Lanchang) had asked that the extension be given.

Although several were against the extension, the state exco members eventually agreed to it.

The state government had imposed a 30-day deadline on the BN when it issued an advance payment of RM22,407,300, for the 1.1 acre plot of land, which was earmarked for a private hospital.

The deadline, which ended yesterday, has been described by the BN as " discriminatory ".

Penang BN was willing to pay RM450 per sq ft for the land which it says should be used to build affordable housing.

NONE State BN Youth chief Oh Tong Keong ( left ) said they were willing to pay up the remaining amount but the state has failed to provide it with a sales and purchase agreement.

At a press conference yesterday, Oh had said if the offer to buy the land is revoke, the BN will refer the matter to their lawyers.

On the sales and purchase contract, Lim said that the state was not "selling" the land but was alienating it to the BN if they make good their payment.

The Taman Manggis controversy has hogged the limelight since June when Oh accused Lim of selling land belonging to the poor to a private developer in 2010 to build a medical centre.

Lim, the DAP secretary-general, clarified that the land was too small for houses, saying a bigger plot (7 acres) in Jalan SP Chelliah had been earmarked for about 1,320 units of public, low and medium cost units.