The former owner of Chief Minister Lim Guan Eng’s bungalow on Jalan Pinhorn, Penang, was not awarded any contract to develop a workers’ village in Juru, Seberang Perai.

Businesswoman Phang Li Koon’s proposal for the workers' village was rejected, Lim said at the state legislative assembly today.

Her company - Magnificent Emblem - was not successful in acquiring the land to build the quarters as it did not comply with the Request for Proposal, Lim added.

“She failed to obtain the contract in the open tender exercise for the project,” Lim said in a written reply to Cheah Kah Peng (PKR-Kebun Bunga) who asked on the matter.

In a written question, Cheah had asked about the state executive council and chief minister’s decision to award the workers' village project.

Instead, the project was awarded to Weslite Dormitory (Penang Juru) Sdn Bhd as it offered the highest price, Lim (photo) said.

“The open tender system works well in Penang as only the highest bidder would win contracts,” he added in his reply to Cheah.

The issue came to light when a letter dated Nov 13, 2013, and addressed to the Penang Development Corporation, signed by Phang indicating her interest to build a workers’ quarters in Batu Kawan, was published in several blogs.

Phang was dragged into Lim’s bungalow case, where he was accused by Umno of buying the unit at RM2.8 million below market value.

She signed a statutory declaration saying she had no business interest in the state government and sold the bungalow to Lim on a willing-seller, willing-buyer basis.

Meanwhile, Cheah also highlighted the complaints of residents over safety and security of the workers' village near their homes.

Lim replied that due to the residents’ concerns, the size of the project has been reduced by half, while the remaining plot of land would be used for affordable and public housing units.

He said the migrant workers were already living among the residents, especially in low-cost housing units and it would be more effective to build a designated area for them.

After all, the workers' quarters will house all workers, not just migrants, Lim added.

“It will not be a detention camp but housing quarters of international standards, which are clean and modern.

“Such projects were successfully done in countries like Singapore, and the company which won the project has a good track record and has done the necessary surveys to ensure that the quarters meet international standards,” he said.