Minutes show state approved land conversion with conditions
GEORGE TOWN (Nov 22, 2009) : The conversion to freehold status of a former state land here was done on condition that the new landowner increases the Penang Development Corporation’s (PDC) equity in its company make-up.
PDC Heritage Hotel Sdn Bhd (PHH) – a joint venture between PDC and YTL Hotels & Properties Sdn Bhd – was only allowed to have freehold status when PDC’s stake was increased to 50% from the original 49%.
The information was disclosed in de-classified minutes of decisions made by the state executive council and Land Office over the controversial conversion of the 1.4ha seafront land adjacent to the E&O Hotel in Farquhar Street here.
Other conditions placed on PHH were that it be chaired by the chief minister himself, and all related payments on the conversion application were borne by YTL.
The minutes were released in response to Umno’s Pulau Betong assemblyman Muhammad Farid Saad who had earlier this month questioned Lim’s written reply in the last State Assembly sitting in August that there were no freehold conversions approved between April last year and June this year.
The approval for freehold conversion for the land was issued on June 25.
Former Deputy Chief Minister and Umno state assemblyman for Teluk Bahang, Datuk Dr Hilmi Yahaya, and Penang Gerakan chairman and former state executive councillor Datuk Dr Teng Hock Nan have since said Lim could be referred to the assembly’s disciplinary committee if found to have misled the house.
When contacted today, Farid said the minutes only proved that Lim’s administration had given the approval for the conversion.
“This shows that he had misled the state assembly. He should admit it,” Farid said
The land was originally owned by the state, and was approved for alienation to PDC on Jan. 3, 1996. PDC signed the sale and purchase agreement with PHH on Sept 3, 1999.
The Sun - 07:17PM Sun, 22 Nov 2009 by Himanshu Bhatt
http://www.sun2surf.com/article.cfm?id=40502
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