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Keeping Penang from going bankrupt is paramount

COMMENT Would Lim Guan Eng be praised for permitting the Penang state government to go bankrupt for paying compensation, so as to stop reclamation projects approved by the previous BN government that will only benefit BN cronies?

This would appear to be the conclusion by a Malaysiakini writer endorsing DAP Tanjung Bungah assemblyperson Teh Yee Cheu for supporting the Umno motion and the five PKR assemblypersons led by Ong Chin Wen (Bukit Tengah) and the others Norlela Ariffin (Penanti), Cheah Kah Peng (Kebun Bunga), Dr T Jayabalan (Batu Uban), and Lee Khai Loon (Machang Bubuk) for abstaining from voting.

Teh had admitted his mistake and apologised to the party, saying he would return to DAP’s struggle. He added that he accepts any punishment by the party for his mistake and is awaiting disciplinary action.

I do not believe that I was elected to allow Penang to go bankrupt. I am willing to be condemned than praised to keep Penang free from bankruptcy with a healthy surplus, for us to undertake investment in building public infrastructure, education and innovation.

The present Penang state government has undergone the bitter and painful experience of paying RM14.7 million (still unrecovered) for the Tang Hak Ju land scandal incurred by BN and another RM20 million to Boustead Holdings Bhd for reducing the height of their hotel in George Town to five storeys from the 12 storeys approved by BN.

Even though BN had approved 3,241 acres of land reclamation, only 744 acres have been reclaimed. Postponing the remainder, especially the Tanjung Pinang land reclamation project by E&O Bhd, could entail compensation costs of up to RM1 billion. This may bankrupt the state.

In moving the motion against land reclamation, Umno assemblyperson Muhammad Farid Saad ( photo ) did not apologise for being a part of the BN government before 2008, that approved 3,241 acres of land reclamation as compared to 60 acres by the present Pakatan Harapan (PH) state government.

Neither did he offer full indemnity from the federal government to pay back-to-back to the state government for making compensation payments for any cancellation of land reclamation projects by BN.

What I find surprising is that some NGO activists chose to support Farid’s motion and ignore the huge 3,241 acres of land reclamation approved by BN, or the possible compensation payouts and lack of indemnity from the federal government.

The other part of Farid’s motion asking for comprehensive studies, such as Detailed Environmental Impact Assessment studies and conducting public consultation, is quite irrelevant because this is already a legal requirement contained in existing federal laws.

Failure to comply would simply mean that the land reclamation will not be not allowed to proceed. Further the state government have never shied from conducting public consultations or town hall meetings.

The difference

Malaysiakini had published an article wondering why veteran DAP leader Lim Kit Siang can ask that BN respects the rights of two MCA assemblypersons, who abstained against a DAP motion by Danny Law in 2002, but his son cannot respect the rights of the PKR 5 to abstain against an Umno motion.

We must remember that the two MCA assemblypersons were abstaining because they opposed the RM1 billion Penang Outer Ring Road (PORR) project that was proposed by their own BN government.

The difference is that the PORR had not being finalised (and has not been built until today), unlike the land reclamation projects that were approved and finalised by BN.

The Umno motion that proposes to postpone land reclamation approved by BN that could result in compensation to be paid not by BN, but by the present Pakatan Harapan state government.

This is patently unfair and is the reason why 23 Pakatan Harapan state government assemblypersons opposed Umno’s motion. Opposing Umno’s motion would also show our disapproval of BN approving 3,241 acres for land reclamation.

Abstaining or supporting Umno’s motion would be to let BN and Umno off the hook for such failure to protect public interest. Abstaining or supporting Umno’s motion would also expose the present state government to compensate for postponed land reclamation that may lead to bankruptcy.

Why then should the present state government be compelled to pay compensation for land reclamation approved not by us but by the previous BN government?

'Highly irresponsible'

The Pakatan Harapan state government is willing to pay for our own mistakes but not pay for BN’s mistakes and failures, especially when there is no full indemnity by federal government on any compensation paid for postponing or cancelling land reclamation.

Failing to protect the interest of the state government from making huge compensation payouts and instead choosing to either abstain or support the Umno motion, is highly irresponsible.

None of the PKR 5 spoke during the debate and neither did they notify the state government nor the four PKR leaders namely Penang deputy speaker Maktar Shapee, the three PKR excos of Deputy Chief Minister 1 Mohd Rashid Hasnon, Abdul Malek and Dr Afif Bahardin, who had opposed Umno’s motion.

PKR whip Ong Chin Wen can inform a PKR national leader of their intention to abstain, but not his own PKR exco or Deputy Chief Minister 1 Mohd Rashid - of a vote of no-confidence on his own leaders.

There is now widespread confusion as to which PKR is now in charge in the Penang state assembly, the PKR 5 or the PKR 4?

Even though such irresponsible actions have caused the confidence of the Penang Pakatan Harapan state government in the PKR 5 and the one DAP assemblyperson, as a reliable and dependable partner to be badly shaken, they remain as Pakatan Harapan government assemblypersons.

At the present moment, their duties as Pakatan Harapan government assemblypersons will continue as normal, together with their government constituency allocations. The state government will assess their role and performance in government-related tasks.


LIM GUAN ENG is Penang chief minister, MP for Bagan, and DAP secretary-general.

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