Illegal Sea Front Land Conversion Issue


By Ong Eu Soon

Since the last election, our political landscape has changed beyond recognition. Many have openly adopted a artisan stand on issues affecting the people on their zealous quest to defend the Pakatan state governments whenever there is a criticism.

The Penang state government under the leadership of Lim Guan Eng surprised a lot of those who voted for change by pursuing the policies and projects of Koh Tsu Koon with a zeal beyond the imagination of Penangites. Lim Guan Eng has willingly, without bribery or corruption, fast tracked all the projects he inherited from Koh Tsu Koon’s administration. 

When pressed on the Queensbay land conversion controversy, Lim Guan Eng blamed Koh Tsu Koon for the decision. Lim Guan Eng said he does not quite agree with the decision, but he has to comply. Lim Guan Eng continued to defend the decision of Koh Tsu Koon. The Chief Minister said that state legal advisers informed him that the land was not bound by a crucial proviso in the National Land Code (NLC) 1965 which forbade foreshore land from being converted to freehold. He said the land had been gazetted as state land – and not considered foreshore – by the previous state administration.

In the press report, lawyer Agatha Foo pointed out a proviso in section 76 of the NLC, which Lim had overlooked in his assembly reply. Foo noted that the proviso expressly prohibits the state from disposing of “any part of the foreshore or sea-bed for a period exceeding ninety-nine years”. The proviso had been inserted when section 76 was amended in Parliament in 1985. “Consequentially, the said proviso would also
prohibit the state from re-alienating or converting any part of the reclaimed foreshore or sea-bed to freehold land.”
Any subsequent attempt by the state to re-alienate or convert any part of the foreshore or sea-bed to freehold, notwithstanding that the foreshore or sea-bed have now been reclaimed, would tantamount to a circumvention of the prohibition in section 76 and hence be ultra vires the NLC.

A lot of critics were puzzled by how the Chief Minister could have missed a crucial proviso in the National Land Code. The truth is now being revealed! The Chief Minister has since wanted to convert a 1.4ha seafront site, adjacent to the 124-year-old Eastern and Oriental (E&O) Hotel along Lebuh Farqhuar, from leasehold to freehold on his own free will.

On Oct 15, 2008 Lim Guan Eng, in a press statement, promised not to follow the footsteps of Koh Tsu Koon in circumventing the National Land Code by converting all reclaimed land from leasehold to freehold status. Now, with hardly a year gone by, Lim Guan Eng has silently converted the PDC Heritage Hotel site from leasehold to freehold status. PDC Heritage Hotel site is a 1.4ha seafront site adjacent to the 124-year-old Eastern and Oriental (E&O) Hotel along Lebuh Farqhuar. This site is not even reclaimed land.

The conversion is clearly against the NLC proviso. Was Lim Guan Eng hiding something from Penangites when he defended Koh Tsu Koon’s decision on the Queensbay land conversion controversy? Did Lim Guan Eng learn anything from the Queensbay land conversion controversy?

Lim Guan Eng has no excuse to pledge ignorance on the proviso. Why did Lim Guan Eng opt to flout the National Land Code proviso by converting the 1.4ha seafront site adjacent to the 124-year-old Eastern and Oriental (E&O) Hotel from leasehold to freehold? The PDC heritage project is within the heritage enclave which means it must comply to the height requirement of not taller than 18 metres. Without the conversion from leasehold to freehold, the project will not have sufficient commercial value to sustain it. Is Lim Guan Eng trying to mislead us again that the prime seafront land which is state land cannot be considered foreshore land?

I am calling all concerned Penangites to stand out and voice their concern over the conversion of reclamation land from leasehold to freehold. We want a state government that abides by the law and not to find any loophole to circumvent any proviso of the National Land Code when dealing with state land. We need to initiate a movement to stop all illegal land conversion especially on reclaimed lands and seafront land.

I believe we need to put a full stop on this bad practice before it is out of control. For those who are interested, you are welcome to join us in our fight against all illegal seafront land conversion issues. I can be contacted thru’ 016-255 9798 or [email protected]



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