GEORGE TOWN, October 18 – In response to recent controversy surrounding land deals, the Penang Development Corporation’s (PDC) board of directors has directed its management to prepare papers to review the land sale process under PDC. The move is aimed at improving the land sale procedures, as PDC employs various methods, including open tender, request for proposal (RFP), and direct award for its land deals. Chow Kon Yeow, the chairman of PDC, clarified that this action was taken to ensure clarity regarding which projects can be approved through each method. The objective is to prevent disputes and shortcomings in the land sale process.
This decision follows calls from the Penang Chinese Chamber of Commerce (PCCC) for a restructuring of PDC’s management in light of a controversial land deal. PDC aims to have the working papers prepared promptly and presented to the board at the next meeting. The papers will contain recommendations and a basis for the board’s final decision. Chow pointed out that PDC’s top management is assessed based on a scorecard and has Key Performance Indicators (KPIs) to fulfill. This move comes amid the controversy surrounding the Batu Kawan Industrial Park 2 (BKIP2) land deal between PDC and UMECH Land Sdn Bhd.
In a recent statement, PDC announced the cancellation of the BKIP2 deal and the forthcoming issuance of an RFP for the land. Chow commented that the statement addressed all questions raised by PCCC, emphasizing that the deal’s termination was due to a change in UMECH Land’s majority shareholder. Regarding the suggestion by PCCC to develop BKIP2 in-house, Chow thanked PCCC for the proposal, promising that they would consider the suggestions. He explained that UMECH Construction Sdn Bhd and UMECH Land Sdn Bhd were essentially the same, with the same shareholders when the land was sold.
He mentioned that it is common for companies to establish special-purpose vehicles (SPVs) for specific projects. Chow also acknowledged a statement by PCCC life honorary president Tan Sri Tan Kok Ping, who had expressed strong criticism. He clarified that PDC had replied to PCCC’s concerns and that it might not always be in his name, but he is the chairman of PDC. The controversy centers on the direct award of land to UMECH Construction and later an agreement between UMECH Land and PDC for land development. The matter has resulted in calls for a reshuffle of PDC’s management, with scrutiny based on KPI reviews and the implications of the land deal.
Note: The comments and statements in this article reflect the opinions of individuals and organizations involved and do not represent official findings or decisions.
