Penang has “sold away” its citizens' interests and rights, state BN said today, over news that state agency Penang Development Corporation (PDC) had sold its stake in Tropical Island Resort Sdn Bhd (TRISB).

TRISB is in charge of redeveloping 80 acres of land on Pulau Jerejak. Prior to the sale, TRISB was owned by federal-linked UDA Holdings Bhd (51 percent) and PDC (49 percent).

But PDC said today it accepted UDA's offer to sell PDC's entire stake to private developer Ideal Property Development Sdn Bhd for RM156 million.

"They now, even defended the deal as a good profit venture," state BN chief Teng Chang Yeow said in a statement today.

"I would say the deal is not about profitability but the rights of Penangites.

"It appears that the DAP-led state government had sold away the interest and rights of Penangites over Pulau Jerejak."

PDC said today it made a profit of RM140.6 million from accepting UDA’s offer to sell the stakes to Ideal Property.

UDA had brought in Ideal Property to jointly develop the Pulau Jerejak project as well as buy out PDC’s 49 percent stake.

But Teng noted that the sale of PDC’s stake comes after Penang Chief Minister Lim Guan Eng in 2011 insisted on buying TRISB over completely from UDA Holdings Bhd.

"They claimed then that it was for the interest of Penangites. Why made such a U-turn five years later?"

Teng also said this was the first time Lim, DAP and the state government had admitted submitting to Umno and Putrajaya.

Yesterday, Lim asked Teng to check with his "buddies" in BN, UDA and Putrajaya if he was not happy with the plan to redevelop Pulau Jerejak.

But Teng said today the federal government had no power to approve planning and building permission for Pulau Jerejak.

"By accusing me that I should know the project since it was approved by the federal government showed how desperate the chief minister is, in trying to evade the issue," Teng said.

"UDA and Ideal Property would not have the guts to submit their project proposal to the state government and local council, if they have not received the nod from Guan Eng.”

But Lim told reporters yesterday that Penang's approval for UDA's development plans was subject to it complying to all local council rules and regulations, including measures to safeguard the environment.

Meanwhile, Teng continued to raise concerns over the deal, which Lim said would benefit Penangites.

He said PDC is the creditor of UDA, which owed PDC in millions.

He queried, "Why would a creditor sell its stake to a debtor, who owed PDC in millions?"

Lim revealed yesterday that the state government sold its shares after UDA's chairperson Johari Abdul Ghani brokered the deal.

It is learnt that UDA has signed a joint venture with Ideal Property, giving it full control of the development project.