Chief Minister Dr Koh Tsu Khoon has been blamed for the financial problems plaguing the Penang Development Corporation (PDC) which has debts in bank loans amounting to RM134 million.

Penang DAP organising secretary Danny Law Heng Kiang accused Koh, who is the PDC chairperson, of mismanaging the corporation.

According to the chief minister's reply at a recent state assembly sitting, PDC had borrowed RM204 million from banks between mid-1998 and April 2004 to sustain several social development projects.

The corporation has managed to settle RM70 million thus far.

A large bulk of the borrowed sum was utilised to build the RM104.66 million Stadium Batu Kawan, which was the main stadium for the Malaysian Games (Sukma) 2000 hosted by Penang.

Another RM30.96 million was used to build 280 government staff units in Jalan Lim Khoon Huat and Jalan Kennedy in George Town.

PDC was given the task to carry out the projects in 1994 when it was financially healthy.

However, at the time of implementation in1998, PDC was hit by financial difficulties due to the financial crisis the previous year.

"Why didn't Koh secure federal grants instead of forcing PDC to borrow bank loans to carry out the projects?" asked Law.

White elephant

Besides the exorbitant sum spent to build Stadium Batu Kawan, PDC has been spending RM80,000 annually for its maintenance between 1998 and April this year.

The stadium has now been handed over to the Seberang Perai Municipal Council (MPSP) as PDC continues to face severe financial constraints under Koh's stewardship.

Built on a 60ha land, Stadium Batu Kawan has since been regarded as another of the state's white elephants.

Until recently the Penang state football team had played their professional league and cup matches at the 40,000-capacity stadium.

However, since last month, the Football Association of Penang (FAP), which is helmed by Koh, shifted the matches to the re-constructed City Stadium in George Town.

"As PDC chairperson, he borrowed money and built Stadium Batu Kawan, while as FAP chairperson, he shifted football matches to the City Stadium.

"As chief minister, he directed MPSP to maintain Stadium Batu Kawan. It is a clear example of conflict of interests, mismanagement and misuse of power," claimed Law.

ATHI VEERANGGAN is malaysiakini 's Penang-based stringer.