Penang Chief Minister Lim Guan Eng has warned businessmen who plan to deal with 1MDB to be cautious as the state government has put in motion ways to halt the company from selling its land in Air Itam.

Lim, who is also DAP secretary-general, cautioned such businesses to be prepared if the state government freezes all their deals with 1MDB, which is mired in a massive financial scandal.

Air Itam is a state constituency on the island and borders on Lim’s state seat, Air Putih.

“If in the event action is taken on 1MDB, don’t plead ignorance or rely on the excuse that you have not been informed,” Lim ( photo ) said at a press conference in George Town today.

“You have been forewarned, not only today, but earlier, as everyone knows about 1MDB and that the company has bought about 200 acres of land in Air Itam before the 2013 national polls,” he added.

Lim’s warning today comes after calling for all business activities of 1MDB be caveated immediately.

Lim said the Penang government was planning to freeze the land deal in the state, adding that it was up to other state governments to follow suit.

Power to halt transfer of land titles

He said the state government had the power to halt the transfer of land titles, or interfere in the sale of land if there is national interest at stake.

“Due to the explosive nature of the controversy, which is of national importance, and have led to a major crisis in our country, we are willing to make this firm stand (to freeze 1MDB deals in Penang),” Lim said.

He said the state executive council at its meeting today agreed to have the state legal advisor and the state secretariat to review laws and procedures to halt any dealings with 1MDB in Penang.

However, he gave assurances that the state government would look after the interest and ensure the rights of the 3,000 households facing eviction if the land were sold.

The decision comes in the wake of The Wall Street Journal report on Friday that nearly RM2.6 billion from 1MDB was transferred into Prime Minister Najib Abdul Razak's ( photo ) personal bank accounts before the 13th national polls on May 5.

Najib's lawyers have shot WSJ an email to ask the US-based financial paper to confirm its allegations in 14 days.

Lim insisted that the Penang government has no deals with the beleaguered 1MDB, which is alleged to be in RM42 billion debts.