GEORGE TOWN, Oct 9 — Penang Chief Minister Chow Kon Yeow has continued to defend Penang Development Corporation’s (PDC) decision to directly award the Byram Industrial Park project to UMECH Construction Sdn Bhd.

Responding to a joint statement by his special adviser Datuk Seri Lee Kah Choon and former deputy chief minister II P. Ramasamy earlier today, he said PDC had conducted due diligence continuously based on decisions made in a November 28 meeting held by a special committee (jawatankuasa kecil).

"PDC had conducted official investigations into the company’s registration, company profile, experience and UMECH was required to bring forward credit facilities support documents from financial institutions as proof of the company’s financial background.

"The Board of Directors had held meetings to discuss and obtain the latest information on the project on August 19 (2022), October 28 (2022), December 8 (2022), February 9 (2023) and April 11 (2023),” he said.

He said all necessary information that was verified was brought to the PDC board meeting 1/2023 on February 9 this year.

"The PDC board meeting approved the land sale as a collaboration with UMECH on principle based on all conditions presented in the same meeting,” he said.

Chow said the PDC board meeting 5/2022 dated October 28 in 2022 made the decision that UMECH has to make a detailed presentation regarding its development concept to the board members during a special meeting on November 28.

"Therefore, a presentation session was scheduled on November 28th that was chaired by me and attended by then deputy chief minister I Datuk Ahmad Zakiyuddin Abdul Rahman, then deputy chief minister II P. Ramasamy, Datuk Abdul Halim Hussain and Datuk Seri Lee Kah Choon,” he said.

He said UMECH presented the project proposal in the meeting.

"The meeting and presentation by UMECH were part of the due diligence by PDC in line with the board meeting,” he said.

As a result of the meeting, UMECH was required to prepare market research and study the land use composition so as to complement and not compete with PDC’s development plans.

UMECH was also required to get input from InvestPenang and Malaysian Investment Development Authority (Mida) to discuss the result of its research, he said.

He said UMECH was also required to provide the details of its funding to PDC.

"Besides that, PDC has to explain its main role in this proposed project and to finalise the terms and conditions of this collaborative development,” he said.

Earlier today, Lee and Ramasamy issued a joint statement to say Chow’s statement on the November 28 meeting was misleading, unfair and caused harm to their professional reputations.

The duo said the meeting on November 28 was not a due diligence meeting to evaluate whether UMECH was suitable to be awarded the contract.

"Neither was there any terms of reference for the so-called jawatankuasa kecil,” they said.

"In fact, it was a meeting for UMECH to provide further details about their proposed development,” they added.

In a separate statement, Chow announced that Lee had resigned as his special adviser and from InvestPenang.

He said Lee was removed as a director from the PDC board on September 26 after a new appointment to the board.

"Datuk Seri Lee had shared with me even before the general election that he wishes to spend time to focus on his private interests,” he said.

Chow said on October 2, he received Lee’s resignation as the special investment adviser to the chief minister of Penang with a one-month notice.

"Datuk Seri Lee also tendered his resignation as board member of Invest Penang,” he said.

He also extended his appreciation to Lee for his significant contribution to the development of the state of Penang.

The issue of the Byram Industrial Park’s direct award to UMECH by PDC was first raised by the Penang Chinese Chamber of Commerce (PCCC) last week.

PCCC president Datuk Seri Hong Yeam Wah reportedly demanded to know why the deal was not done through open tender.

He had also alleged that the land was sold to UMECH for RM646.02 million that the chamber claimed was significantly below the value of the land.

In his statement responding to PCCC, Chow said the project was awarded to UMECH after a business matching exercise in ExpoDubai 2020.

He claimed the land was located near Pulau Burung landfill with a path that garbage trucks often frequent, so it was difficult to attract investors for the project.

He said it was why the project was promoted at the Expo Dubai 2020 and that UMECH had voiced their interest during a business matching session in that expo.