No fraud in land deal, says ex-DCM

DERRICK VINESH and ANN TAN at the Penang State Assembly yesterday

THERE was no misappropriation of funds in the land deal made by the previous state government that could cost Penang to lose up to RM40mil because of an error, according to former deputy chief minister Datuk Seri Dr Hilmi Yahya.

Dr Hilmi said that during his tenure as state Land Committee chairman between 1999 and 2004 the state government had discovered the error and taken action to rectify it.

“The state government withdrew the land offer to the injured party, who in turn sued the state.

“The matter is still pending in court as the state had appealed to reduce the compensation amount,” he told reporters during tea break at the state assembly here yesterday.

Dr Hilmi said the present state government could review several aspects of the case to bring down the compensation amount.

He said action had already been taken against the state officer concerned over the negligence, adding that since the case had yet to be settled in court it had been brought to the attention of the present state government.

On Monday, Chief Minister Lim Guan Eng, in his winding-up speech, said the state could incur losses of up to about RM40mil due to negligence by the previous administration in approving a 4.3ha plot of land to be leased to an individual.

Lim said the land deal should not have taken place, as the plot was too big to be given to an individual.

He said yesterday that former chief minister Tan Sri Dr Koh Tsu Koon should apologise to the public on the matter.

Lim added that Dr Koh should share the responsibility, as he was the head of the state executive council at the time.

On PKR de facto leader Datuk Seri Anwar Ibrahim’s decision to contest in Kulim Bandar Bahru, Lim said the DAP would support Anwar wherever he wished to stand.

Source: The Star 30.7.2008