The twists and turns in the Taman Manggis land issue in Penang is
starting to resemble a soap opera but it has also raised the question of
whether the legal procedures are observed in the sale of state land.
THE
showdown over a plot of land known as Taman Manggis or “mangosteen
garden” in the heart of George Town is about to erupt in another
slanging match on Nov 3.
Dubbed by some as the “Robin Hood story”, the Taman Manggis land has become one of the most controversial issues in Penang.
It
has also become a rather entertaining saga of gamesmanship between
Chief Minister Lim Guan Eng and his political secretary Ng Wei Aik on
one side and the state Barisan Nasional Youth on the other.
The 0.4ha of land had been designated for affordable housing but before the project could take place, Barisan was toppled.
Lim’s
administration has since reportedly sold the land for RM11mil to a
Kuala Lumpur company that is planning to build a health tourism facility
that includes a private dental hospital and hotel on the site.
That
was how the Robin Hood thing came about, but with a twist where Barisan
is accusing the Pakatan Rakyat government of being a distorted version
of Robin Hood by taking land meant for the poor to give to the rich.
When
Barisan accused the state government of selling the land at below
market rate, Lim challenged it to buy the land for RM22.4mil. Lim
probably thought Barisan would not take up the dare. After all,
RM22.4mil is not small change.
But Barisan agreed and announced that it had set up a special purpose company to buy and develop affordable homes on the land.
Caught on one foot, the state government was forced to respond and Ng
issued an offer letter to Barisan. And that was when the soap opera
began.
The
Barisan side led by its State Barisan Youth chief Oh Tong Keong
proceeded to pay 1% earnest money as is called for in such transactions.
The next step, as anyone would know, is for the lawyers from both sides to draw up a sales and purchase (S&P) agreement.
Once
that is signed, the buyer would pay the balance of the requisite 10%
and depending on the terms and condition, the full amount is usually
paid within three months or more.
This is to enable the buyer to raise funds or secure a loan from the bank.
However, following the 1% payment, Lim demanded that the Barisan pay up the rest of the amount within a month.
The outlandish demand saw a few jaws drop on the Barisan side. First, it
is not possible for Barisan to cough up that kind of money in so short a
time.
Another was the audacity of the demand.
“There
is no S&P agreement in sight and the seller is demanding the full
amount. Do they understand the laws of transaction? Without an S&P
agreement, no one would want to pay RM22.4mil,” said architect Khoo Boo
Soon.
Khoo, who was the former building director of the Penang
Island Municipal Council (MPPP), is quite appalled at the frivolous way
that state property is being treated.
He is incredulous that
state land is being sold based on an offer letter by a political
secretary on the instruction of the Chief Minister.
“I have been a
government servant for more than 17 years. As far as I know, land
transactions have to be discussed and decided by the state exco, the
state legal adviser has to be consulted, the state secretary has to be
involved. It cannot be a one-man decision, both parties need to sign an
S&P agreement,” said Khoo.
The Barisan side was more direct. “This
is government land, it belongs to the people. The land does not belong
to the Chief Minister’s grandfather. We are not buying a bicycle or a
car, this is about public land costing millions of ringgit,” said Oh.
The
Barisan side had on Oct 3 written to the state government requesting
for an S&P agreement before they proceed to pay up the rest of the
money.
On Oct 8, the state secretary wrote back asking them to refer to the offer letter and to pay up within a month.
To
compound this half-past-six state of affairs, rumours abound that the
land has actually been sold to the Kuala Lumpur company.
No one can tell for sure because the state government has been tight-lipped about the issue.
Requests for information on the actual status of the land has run up against a stone wall.
On
top of all that, the house that Lim is renting in Penang reportedly
belongs to the wife of the major stakeholder of the Kuala Lumpur
company.
The lady is also the cousin of state exco member Phee Boon Poh. The
implication of all this is unclear but it does add spice to the story.
Many
people following this soap opera are quite confused but that is what
makes soap operas so addictive – there are lots of twists and turns.
The
more discerning think Lim has no intention of selling the land to
Barisan, hence the conditions and obstacles put in the way.
Some suspect the delay tactics are aimed at making Barisan give up.
But
it would be a blow to Lim’s administration if the Barisan people
actually purchased it and proceeded to build low-cost housing.
Lim
would lose face, particularly given that his administration has failed
to build any affordable housing since coming into power.
To make
matters worse, this is happening amid an inflated property market on the
island and where house prices have soared beyond the reach of 80% of
wage earners.
Lim should be transparent about the issue. If the land has been sold, he should admit it.
If it is still in the state’s hands, then he should do the decent thing and use it for its original purpose.
Instead
he is angry at being criticised and is punishing those who want to
build affordable homes by doubling the price of the land.
A Penang lawyer said he is not surprised about the “Robin Hood issue”.
“What
shocks me is the silence on the part of the Penang NGOs. They used to
be so vocal on issues affecting public interest,” said the lawyer.
In the meantime, the countdown to Nov 3 has begun.
ANALYSIS BY JOCELINE TAN The Star/Asia News Network
P/S: Landlady of CM’s residence is not wife of company stakeholder
Regarding the Taman
Manggis land, the Star and State exco member
Phee Boon Poh clarified yesterday that the woman in question is his
cousin, she is not married nor is she the wife of the company
stakeholder.
“My cousin and the stakeholder are just business partners,” he said.
The
Taman Manggis land which had been designated for low-cost housing by
the former Barisan Nasional government, became an issue when the Lim
administration decided to sell it to a Kuala Lumpur company to develop a
health tourism facility that includes a private dental hospital, hotel
and multi-storey car park.
Related post:
Land sold for a song? Aug 11, 2012
