Guan Eng: Penang will not approve any 1MDB land deals
State chief minister willing to see 1MDB in court over the restrictions.
(Free Malaysia Today) – Penang will not approve any transfer for parcels of Air Itam land belonging in part to sovereign investment fund 1Malaysia Development Berhad (1MDB), reported Malay Mail Online today.
State Chief Minister Lim Guan Eng was quoted as saying he had instructed the state land office to abide by the directive, due to questions surrounding the purchase of the land as 1MDB did not have 100 per cent ownership of the tracts.
“1MDB must first clarify the issues tied to its purchase of the Air Itam land with the Land Office before the state government decides on whether or not to approve the transaction.
“They can take us to court for not approving any land transactions. We will gladly see them in court,” he was quoted telling a press conference.
According to him, the decision was in line with public interest because the money spent by 1MDB was from public funds.
“It is incredible that 1MDB had bought the land at RM1.3 billion and yet does not have a 100 per cent stake in it.
“This means they are at the mercy of the other landowners. If 1MDB wants to buy up the share from the other landowners, they could be forced to pay a very high cost,” he said.
Lim was referring to 1MDB CEO Arul Kanda’s “admission” in a recent interview with The Edge that 1MDB jointly owned some portions of the land with other parties.
Lim also pointed out Arul’s “miscalculation” in saying that about RM240 million was needed to relocate squatters on the land, saying it would cost between RM600 million and RM800 million instead.
“This means the cost is higher than his estimates,” he said.
Penangites presently residing on the land have not received any notices of eviction while 1MDB has not announced any formal plans for the piece of land either.