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    Tuesday, April 05, 2016

    Taman Manggis: No Longer A Question Of RM2.8 M Only, But RM59 M


    Press Statement
    Abdul Rahman Dahlan
    BN Strategic Communications Director

    April 5, 2016

    FOR IMMEDIATE RELEASE

    NO LONGER A QUESTION OF RM2.8 MILLION ONLY, BUT RM59 MILLION

    ● On 23 March 2016 during a parliamentary session, I revealed that evidence has been found in respect of the controversial land, previously designated for Phase 2 of an affordable housing project in Taman Manggis, Penang (“the land”).

    ● The said evidence suggests that a sub-sale transaction of the land might have taken place from KLIDC to a third party.

    ● Today, I have before me the duly signed and stamped Sale and Purchase Agreements dated 11 November 2015 of the land. The purchase price the sub-sale transaction is read at: RM70,643,628.00.

    ● The agreements that formed this sale are inter-alia connected to each other and are legally taken to mean one agreement, which reads:

    1. The sale of Kuala Lumpur International Dental Center Sdn Bhd (KLIDC) for RM18,643,628; and
    2. The sale of Victoria International Medical Centre Sdn Bhd (VMC) for RM52,000,000.

    ● Datuk Tang Yong Chew and his wife own all three companies – KLIDC, VMC and the vendors of VMC, Tang Renewable Energy Engineering – in majority.

    ● Based on the latest submission of accounts to SSM, KLIDC has a paid up capital of RM300,000 and negative net asset value of RM1.2 million.

    ● Meanwhile, VMC was created in Sept 2010, two months after the Taman Manggis land was awarded and has a paid up capital of RM500,000 with negative net assets of RM1.6 million.

    ● Further in the agreements, it is also stated that VMC had, on July 2011, executed a joint-venture agreement with KLIDC to develop the land.

    ● When read simultaneously, the two agreements appear to effect the sale of the Medical Center and Hotel project with the core asset being the land at Taman Manggis.


    ● In today’s property market, the asking price of commercial land along Jalan Burmah where this said lane is located can fetch up to RM1,000 psf or more.

    ● After my expose in Parliament recently, the Penang Chief Minister has denied that the land had been sold to a third party. But what he did not disclose is that the land is now held by KLIDC and the sale of the shares of KLIDC has the same effect of selling the land too.

    ● Given any standard government project and privatisation agreement, the `sale or change of ownership of a company, which has been awarded with a project, must be duly notified and approval to be obtained from the state government before such sale of shares can take effect.

    ● Did the Penang State Government notify of the sale of this project in Nov 2015 and subsequently give the approval?

    ● Or was this standard term deleted in the agreement between the state government and KLIDC?

    ● The land was originally sold to KLIDC on 16 Jun 2010 when DAP Penang Government had awarded it under a controversial RFP process at RM11,552,208.00 or at RM232 per square foot – a price many believe was grossly lower than the market value at the time.

    ● With the revelation before you today, on face value, the land previously allocated for public housing to benefit the poor has been sold to a private company at an allegedly underpriced value, without noticeable physical works on the land for almost six years after the award.

    ● This project had then been subsequently resold to a third party 5 years later - for a handsome price of RM70.6 million - a projected profit of RM59 million while the core project remains undeveloped.

    ● To this end, I have instructed my team to submit the sale and purchase agreements revealed today to SPRM and PDRM – along with other documents that we have uncovered. We hope that the documents will assist them to execute their job without fear or favour.

    -Ends-
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