Penang Chief Minister Lim Guan Eng has sent a letter of demand to MCA-owned The Star for alleged defamation for publishing “lies” by state BN chief Teng Chang Yeow.

The offensive statement published in the English daily on Nov 16 quoted Teng alleging that Lim had rejected a “profit guaranteed” deal, causing state agency Penang Development Corporation (PDC) to lose about RM220 million, including the ownership of Pulau Jerejak.

Quoting PDC sources, Teng had said that the agreement inked in 2013 had the potential profit guarantee of RM450 million, based on a gross development value of RM1.5 million.

He added that Lim, who is also PDC chairperson, had however rejected the 2013 agreement between Tropical Island Resort Sdn Bhd (TIRSB) and Ideal Property Development.

TIRSB is a joint-venture between federal agency UDA Holdings (51 percent) and now Ideal Property.

“Why did Lim keep silent over his rejection of the agreement but decided to sell PDC’s 49 percent stake in Pulau Jerejak to Ideal Property’s subsidiary (Q Island Development)?” Teng had asked.

Lim and PDC general manager Rosli Jaafar had strongly denied rejecting the profitable offer, describing Teng’s claims as “very dangerous slander and lies”.

Lim went on to explain in detail about the deal involving Pulau Jerejak, saying the island - other than the 80 acres belonging to TIRSB and another plot owned by Boustead Shipyard - would be gazetted as state park.

“To date, Teng had failed to show proof to back his allegations,” said Lim at a press conference in the State Legislative Assembly meeting room today.

“The public in Penang wants to know why the mainstream media failed to press Teng to show proof that I have rejected the agreement. Instead my statements have either been downplayed or completely blacked-out in the mainstream media.

“The Star has not only consistently lied but created lies when it reported that one flood victim died when all other newspapers reported that the death was an accident,” Lim alleged.

He is baffled as to how Teng could have known about the legal action against The Star when he announced in his statement on Monday that he would eventually be sued whether he provided proof or not about his claims.

“Only The Star and me would be privy to this information.

“This further validates suspicion that the mainstream media and BN have such a close rapport that they failed to demand the same degree of truth, documentary proof, investigative reporting and public accountability as they demand from Pakatan Penang government,” said Lim.