Penang Chief Minister Lim Guan Eng appears unsettled despite extending another 30 days for BN to pay RM22 million for the Taman Manggis land.

Now Lim questions the Penang BN's "honesty" in delaying the payment although they claim to already have the money.

"We question whether they are serious in buying the land to build low-cost housing for rental (Projek Perumahan Rakyat or PPR).

2012 selangor dap convention 041112 lim guan eng "Why retain RM22,183,227 when it can be paid to the state government?" queried Lim ( left ) in a statement.

He said the state BN must concede that even though they are no longer in power, they are dealing not just with any ordinary body but with a properly constituted state government.

After all, the state government is not going to run away with the money, quipped Lim.

He was referring to BN Penang chief Teng Chang Yeow offer to acquire the 1.1 acre land on Oct 3 for RM450 per square feet to  build the homes.

Teng, Gerakan's secretary general had paid only one percent or RM224,074 as earnest payment on behalf of BN Penang.

Stiff reminder of state's rights

Lim said the following day he had replied to Teng that the remainder 99 percent or RM22,183,227 must be paid within 30 days.

"When this period lapsed without payment, the state government has every right to terminate this land transaction to state BN," said Lim.

"However since Penang BN claims to have the money, we are the willing to grant another 30-day extension period till Dec 4 for them to make the full payment," he added.

Lim reminded the BN that the extension included two conditions:

  • All the directors and shareholders of Taman Manggis Fasa 2 Development Sdn Bhd must include Teng and other Penang BN leaders as both the state government and Teng had agreed that BN Penang is buying the land; and,
  • The paid-up capital must not be RM2 as revealed in the search on the company on Oct but must be the required amount for housing development companies as set by the Housing and Local Government Ministry.
The paid-up capital for housing development companies has been recently revised to three percent of gross development value.

"How can a RM2 company carry out a housing project?" questioned Lim, who is also DAP secretary-general.