BN strategic communications department deputy director Eric See-To has accused the Penang state government of attempting to divert attention from the undersea tunnel scandal to 1MDB after it was caught lying.

“This is an obvious tactic by the Penang government to divert to 1MDB so they can avoid answering or debating (MCA deputy president) Wee Ka Siong on the tunnel scandal where RM22 million was already paid in an attempt to stop corruption investigations,” he said.

He was responding to Penang Chief Minister II P Ramasamy issuing a counter dare to Wee.

Ramasamy said he would like to buy land in Kuala Lumpur for the price paid by 1MDB for the Tun Razak Exchange (TRX) land.

This was after Wee challenged Ramasamy to sell prime seaside land on Gurney Drive in Penang for RM475 psf.

However, See-To claimed that were key fundamental differences between the two issues, which were:

1, The below-market value Penang land is transferred to a 100 percent private company. The TRX land is transferred to a 100 percent government-owned company.

2. No relocation cost will be borne by the developer in the Penang tunnel case whereas 1MDB has to pay for all relocation and compensation cost for existing residents on that land.

3. The Penang private company can spend their own sweet time to let their prime land appreciate in value and profit from it as they are only required to start construction of the tunnel 10 years after contract signing.

Whereas, 1MDB is asked to start work immediately to create jobs and economic benefits now in order to build Malaysia's financial hub as well as the world's biggest Islamic finance hub.

4. The Penang government will be spending RM9 billion of the state's money to enhance the 100 percent private owned land. whereas as a condition of the sale, 1MDB has to pay for the RM3 billion in infrastructure costs including the underground highways out of TRX.

5. The chief beneficiary of the Penang project is the 100% private Tunnel SPV (special purpose vehicle) company whereas the chief beneficiary of the TRX project is a 100 percent government-owned company.

See-To said he failed to understand how the Penang government does see the striking differences between the two issues.

“No one will believe the Penang government that prime seaside land at Gurney Drive only cost RM457psf today.

“Hopefully, the rakyat will see it and expose the corrupted scammers and fraudsters,” he added.