GEORGE TOWN, Oct 18 — The Penang Development Corporation’s (PDC) board of directors has ordered its management to prepare papers to review the land sale process under PDC.
PDC chairman Chow Kon Yeow said they want to improve the land sale process as PDC used several methods for its land deals, namely open tender, request for proposal (RFP) or direct award.
“This order is so that the management can fine-tune all the procedures to make sure it is clear which project can be approved through any of the methods so that there is no dispute or weaknesses in the process,” he said during a press conference at his office in Komtar today.
Chow was asked to comment on calls by the Penang Chinese Chamber of Commerce (PCCC) for the PDC management to be restructured.
The Penang chief minister said the management was told to come up with the working papers as soon as possible and present them to the board at its next meeting.
“We want them to come up with it as soon as possible, in a few weeks,” he said.
He said the papers to be presented to the board will contain recommendations on the processes and the basis for consideration for the board to make its final decision.
He further said PDC’s top management are evaluated based on a score card and that they have KPIs to fulfil.
Chow has been under fire in recent weeks over the controversial Batu Kawan Industrial Park 2 (BKIP2) land deal between PDC and UMECH Land Sdn Bhd.
The PDC board issued a statement yesterday announcing that the deal was cancelled and that a RFP will be called for the land.
“If you read the statement carefully, it has replied to all questions raised by PCCC,” he said.
Earlier today, PCCC president Datuk Seri Hong Yeam Wah raised more questions regarding the deal and suggested that PDC develop the BKIP2 itself instead of outsourcing it.
Hong asked why the deal was signed with UMECH Land when the discussions were with UMECH Construction.
He also claimed Chow had failed to answer questions raised by PCCC regarding the project.
In response, Chow said PDC had replied to PCCC’s letter in July.
“I am the chairman of PDC. If PDC replied them in a letter, it meant I have replied them through PDC,” he said.
He added that all questions raised by PCCC were replied in full in the PDC board statement issued yesterday.
He said the PDC board held a meeting on Monday before issuing the statement.
He said PDC made its decision to terminate the deal with UMECH Land due to a change in the company’s majority shareholder without informing PDC or obtaining its approval.
He said the termination letter was issued and they will await a response from UMECH Land.
As for PDC developing BKIP2 itself, Chow thanked PCCC for the suggestion.
“We will look into suggestions and ideas they proposed,” he said.
As for why the deal was signed with UMECH Land instead of UMECH Construction, he said both companies have the same directors and shareholders.
He added that sometimes, companies set up special purpose vehicle (SPV) companies for specific projects.
He stressed that the PDC board is aware of all aspects of the deal with UMECH as they were briefed in every meeting about the project except for the change in majority shareholder of UMECH Land.
Chow was also asked to comment on PCCC life honorary president Tan Sri Tan Kok Ping’s diatribe against him that was reported by Chinese dailies online.
“We will see what is printed,” Chow said.
Tan, in a Chinese language press conference at PCCC held with Hong, had reportedly called Chow “incompetent, useless and shameless” over the whole land deal controversy.
