The three-member high-powered state committee, set up to probe alleged land scams by the previous government, has uncovered irregularities in a land alienation transaction.

The site was alienated to a private contractor to carry out quarrying activities in Seberang Perai Tengh district about six years ago.

It is learnt that relevant government departments, such as the district and state land offices, had erred in procedure by approving the application when the land was under a state lease contract awarded to another company.

The committee has almost completed its probe and will soon submit a full report to the executive council.

penang land scam seberang perai tengah issue 140708 01 Headed by Deputy Chief Minister I Mohammad Fairus Khairuddin (right) , it is said to have been baffled by two questions:

• Was the ‘error’ prompted by political considerations?

• Why was the application process rushed through?

Once the executive council has scrutinised the report, the state government will decide on further action, in particular legal proceedings against those behind the ‘error’.

The slip-up has already prompted the lease-holder to initiate legal proceedings against the Penang government for damages.

Malaysiakini has learnt that the state legal department is in negotiations with the plaintiff for a reasonable settlement, but this could still cost the current state government millions of ringgit which will have to come out of the public coffers.

The land alienation deal was said to have been hastily approved by the land committee, then headed by deputy chief minister Hilmi Yahaya, and endorsed by former chief minister Koh Tsu Koon who chaired the executive council.

hilmi yahya When contacted, Hilmi denied any wrongdoing on his part. He said he is prepared to give a statement to the authorities, provided there are government investigating agencies such as the Anti-Corruption Agency or the police.

He stressed that he would not answer any call from either a state investigating committee, the executive council or the chief minister because he is “not answerable” to them.

“My conscience is clear. I did not commit any wrongdoing,” he said.

The committee was set up to investigate suspicious land deals between 1990 and 2008, after the DAP-led state government found that “tens and tens and tens and tens of millions of ringgit” had been siphoned off under Barisan Nasional rule.