Penang Chief Minister Lim Guan Eng has sent a letter of demand to state BN chief Teng Chang Yeow on his claim that Lim had rejected a “profit guaranteed” deal involving the development of Pulau Jerejak.

The demand letter, dated Nov 25, was issued by lawyer Mureli Navaratnam and is related to an article published on Page 8 of the Nov 16 issue of The Star, headlined “Pulau Jerejak land sale questioned”.

The article was based on Teng’s press conference held on Nov 15 at the state Gerakan headquarters on Jalan Macalister.

Lim has also sent a letter of demand to The Star for continuing to publish Teng’s claims.

In his letter of demand, Lim said the contents of the article “are false and defamatory”.

He wants Teng (photo) to prove the authenticity of his quotes and statements as published in the article.

“Inform us of the full identity, particulars and address of person(s) referred to in the article as reliable PDC sources within 48 hours” from the date of the notice, the letter of demand says.

Content of apology 'must be approved'

Lim also wants Teng to publish a full retraction and apology in The Star, and with the content of it being first approved by him.

Teng was also asked to inform Lim of the sum he was prepared to pay the chief minister for the “embarassment, harm and distress” caused, within seven days of the notice.

Lim said the allegations cast “severe aspersions” on his character and reputation as a senior politician, statesman, parliamentarian and chief minister, which have been brought into contempt and public odium.

He said Teng’s “false, baseless and defamatory statement” had caused The Star to “recklessly and/or maliciously and/or in bad faith, calculated to embarrass” and cause damage and irreparable harm to him.

According to Teng, who claimed he had proof of his claim, the rejection of the deal caused state agency Penang Development Corporation (PDC) to lose about RM220 million, including the ownership of Pulau Jerejak.

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

The 2013 agreement was offered between Tropical Island Resort Sdn Bhd (TIRSB) and Ideal Property Development, the company that purchased the state’s 49 percent stake to develop Pulau Jerejak.

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

Lim, who chairs PDC, and its general manager Rosli Jaafar have strongly denied rejecting the profitable offer.

Lim had then described Teng’s claim as “very dangerous, slander and lies”.

Asked to comment about the matter, Teng said his lawyers were reviewing the letter of demand.

“I will have a press conference soon to inform the press about the matter,” he told Malaysiakini.

Asked about proof of his claim, Teng said he would reveal the necessary details in court.