MACC begins probe on Merc purchase
(Fz.com) – The Malaysian Anti-Corruption Commission (MACC) has started probing the Penang State Government’s purchase of a Mercedes-Benz for chief minister Lim Guan Eng.
It is understood that the Commission is trying to establish a link between the purchase of the silver Mercedes-Benz S300L from Lowe Motors Sdn Bhd and tycoon Tan Sri Tan Kok Ping who is believed to have a stake in the company.
Sources tell FZ.Com that the link to Tan is vital due to the numerous complaints and allegations in the public sphere and media over Tan’s “privileged relationship” with the State Government, particularly with Lim, that has benefited the former as a businessman.
Lim’s critics did not buy the defence that the State Government only paid RM298,263.75 for the car which was originally priced at RM657,218.
State finance officer Datuk Mokhtar Jait who announced the purchase at a press conference on New Year’s eve justified the move saying that the cost, although without insurance, was at a discounted price and is tax exempted.
Lowe Motors, it can now be revealed was in fact a company that Tan had interest in. He was at one time, managing director of the company until Cycle & Carriage Bintang (CCB) bought a stake in the company in 2010.
A notification to the Kuala Lumpur Stock Exchange by CCB on Nov 23, 2010 informs the authorities of a proposed acquisition of a 100% equity interest in Lowe Motors for RM16 millon.
Tan is listed as a director of the company which was incorporated in Kuala Lumpur on Feb 4, 1984.
Others named are Meng Tak Corporation Sdn Bhd; Be Mine Holdings Sdn Bhd; LHG Holdings Sdn Bhd; Wabina Holdings Sdn Bhd; Tan Sri Mohd Razali Abdul Rahman; Lee Chwee Yin; Tan Tee Yong and Loo Khee Kwong @ Danny Loo.
Tan has rejected accusations that he is DAP’s “Mr Moneybags” in Penang who has enjoyed many concessions and development approvals, among them parcels of land on Bukit Relau which was cleared by his company General Accomplishments Sdn Bhd.
The company was fined RM30,000 in July for illegal land clearing.
Widely known as a representative of Berjaya Corp founder Tan Sri Vincent Tan in Penang, Kok Ping is also said to be the middleman who negotiated the purchase of the Penang Turf Club for Berjaya Land Bhd for a fraction of its value. Berjaya Land only paid under RM500 million for the land that is valued at RM1.5 million.
Vincent Tan and his brother Tan Sri Danny Tan have now acquired interest in development of casinos on Penang Hill.
The controversial Voluntary Patrol Squad was also set up from a RM1 million donation from Kok Ping.
“With regards to the Mercedes, we want to verify if it was an inducement for contracts and concessions,” said a source.
