Dec 312008
 

We have heard it said quite a few times now: that if the Penang government or Municipal Council were to cancel of even review projects already approved by the previous administration, it could be sued by developers.

This has led to official inaction in a number of important cases ranging from the land rezoning of the Turf Club land, approved hill-slope projects and approved high-rise buildings in the heritage area.

What if urgent state action is required in the public interest? Can official inaction be justified by the fear of being sued or of being held liable to pay compensation?

Blog reader ashtanga, a lawyer, thinks not:

LGE keeps worrying about lawsuits, for this matter (hill-slope projects) as well as PGCC and the Turf Club land. Part of his problem might be the quality of the legal advice the bureaucrats in admin feed him. Remember he seeks legal counsel from a civil service inherited from Koh Tsu Koon’s time. I am from the legal profession, and I can safely say a good many of us bristle when he falls back on those anxieties at a time when we expect him to change things for Penang.

If he had the political will to restrict development on Class 3 slopes, even so far as to re-evaluate previous approvals, and if necessary, revoke them “in the public interest”, there are enough laws which will allow him to do just that. We aren’t talking frivolous reasons but serious considerations for public good.

What do you think?

  38 Responses to “Are the Penang govt’s fears of being sued justified?”

  1. There are enough laws he says but doesn’t quote them.

    There are enough laws, but would the decision from the bench reflect this? At that stage, if things go pear shaped for the state government, no lawyer are going to step in and pick up the tab.

    There may be enough laws to protect the state government but then again ISA is being used to protect people nowadays.

    As things stand, when well connected people sue the opposition, the opposition is always the underdog. …

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  2. It is not acceptable for LG to fall back on this reason or shall I say excuse. Legal ramifications are part and parcel of governance, its like the good lawyers said, if he uses the correct approach, there are many avenues in law for him to use to his advantage. Money is not everything, principle also counts

    Take it in your stride Mr. CM!!!!!!!!!!

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  3. I am not a lawyer but even I can see that LGE is just dishing out excuses to disguise his overtly “business-friendly” approach and from offending the developers.

    Firstly, he has the right to stop or even cancel any projects if they endanger public safety. Even if he does not cancel them, he could always engage the developers to put in more stringent measures to ensure public safety by getting the involvement of all stakeholders.

    His penchant for putting business interests before the public welfare is shown by his insistance that hillslope development will continue in Penang. His lame excuse of having a stricter regulations ala Hong Kong will not help at all. Firstly, Hong Kong is made up of 90% granite while ours is mainly weathered rock that is much more vulnerable to rainwater. Secondly, such measures requires high level of technical expertise and supervision that is costly.

    Knowing LGE’s busiess friendly ways and his chummy relationship with the business community, all these promises likely forgotten once the dust has settled on the Bkt Anatarabangsa issue.

    As days go by, my confidence in the FAT CAT govt of LGE has been nose diving. As I recall, not a single pre-election promises had been carried out. It has been all rheotics but preciously little action.

    Worse of all, I was shocked to read this morning that a serving DAP assemblyman being lined up for the post of MPSP head. Such a blatant abuse of power is something that even UMNO/Gerakan dared not to do in the past.

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  4. All purchasers must “acknowledged in writing” after having read an annexure stating the danger of buying & staying in class 3 slopes (hill-slope projects) .

    All purchasers are not permitted to sue the Municipal Councils should they get buried and killed in their completed units in future.

    Just like AMARAN MEROKOK exclusion clause.

    No buyers, means more hillside developers will go bankrupt.

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  5. I think LGE needs to get some formal legal opinions from the lawyer ashtanga above. That way, if LGE relies on the advice ashtanga gave and thereafter lose a law suit, at the very least he can sue ashtanga for the professional advice given. Thus its a win-win situation for the rakyat.. and it also prvents ppl from rambling and bull-s****ing abt the weight of legal considerations unless truly justified.

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  6. Ask Madam Kee Phaik Chin! She will tell you, if any developer with guts to sue please do so unless the developer don’t want to cari makan in Penang.

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  7. One thing I need to disagree with ashtanga is that LGE is getting his legal advice from a civil service of the former government. As we know, the DAP and the Penang state govt is full of experienced and senior lawyers. Knowing LGE’s distatste and distrust of KSK’s legacy, I hardly think LGE will rely on the state civil service for any professional advice, be it legal or others. He just needs the state civil service to pin blame on when something goes wrong….

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  8. Those people who say to hell with lawsuits – these are the same people who will moan and groan when the Penang govt loses a case (very likely with our upright judiciary) and the penang taxpayers are saddled with settling the compensations.

    If ashtangga(?pseudonym) is convinced that he (and the other “good many” members of the legal profession) have valid legal arguments – let them join together and approach the State Govt( office: Komtar), instead of just commenting in blogs.

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  9. Which is worse .. lawsuits (loose some money) or landslides (loose lives) ???

    Inaction by LGE can be taken that the Penang government does not care much about people’s lives or long term sustainability.

    Sdr LGE should not try to please everyone. People and the environment MUST come first.

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  10. Those hill side projects approved is for whom?
    The developer is not going to sit in,,, it’s the people who purchase it. Tell them the state goverment are not going to responsible for the cause as the state goverment is already objected on the project. i dare not to buy if i am one of them.

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  11. Maybe those who rant on LGE not doing enough should step forward and tell him the most ‘practical’ solution instead of ranting hell & heaven about it. It’s so easy to be sitting on the sideline commenting that they are not doing enough and does not have a political ‘will’.

    Remember, LGE knows he is accountable for both rakyats’ coffer and safety. There’s some cost & benefit analysis being done by him. You guys seems to conveniently forget that the state government doesn’t print money in their backyard. Oh never mind, few millions or hundred millions ringgit lost….so long the safety blah blah. You again conveniently forgotten that those millions are for capital & social developments, for ppl to come and collect your rubbish generated by you, to repair your road, to maintain public facility so ppl can buy things or get service from you so that you could fatten your pocket, etc. So when the millions are lost and the state can’t afford to provide those ‘good’ service stated earlier, all hell broke lose again….blah, blah, lousy, where’s my tax money gone, blah….till the cow comes home.

    If you want to blame, why not blame the buyers who is gonna buy the house from the developers? Hey maybe you are one of the buyers….

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  12. The Pakatan is very lacking in lagal counsels. All their people getting sued left, right, centre by the those close to BN. Even our MBPJ councilor is also getting sued, RM50mil if I’m not mistaken. In the end, ISA can also be used against them. It’s a case of darn if you do, and darn if you don’t!

    But IMHO, he should act bravely on the hillslope issues. The good people of Penang will surely back him if he does the honourable thing.

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  13. YAB LGE should have the political will to stop the developments on hill slopes. Hey, the whole of Penang is against this except for some developers and a few housebuyers. If LGE knows how to whip up public sentiments and have a publoic rally against hillslope development, do you think the developers will sue? I suppose his Cheif of Staff busy at speaking engagements in Seoul, Ho Chi Minh City, Jakarta and…..

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  14. Dear Kelvin,
    No point suing Astanga if the damaged has been done. That’s if Ashtanga given LGE a wrong adive. Please people, THAT’s HYPOTHETICAL. No offence, Ashtanga!
    Remind me the biblical story of David stop praying after his son died. A punishment from God for his adultereous affair (with Baseehba) and heinous crime (ordering Uziah, Basheeba husband to be sent to the area where the battle is the fiercest and be killed). Oops, not a good analogy!
    Well, I do suggest that LGE can release those documents if there is no non disclosure clause in the agreement. So that independent lawyers can have a look at those agreement before giving further advices. Or team up with the resident action commitee.

    Dear people,
    Compensation is a serious thing. It can runs up with hurdred millions of dollars. If you are not carefully. It’s good to be brave but not wise to be foolish. These developers ain’t that naive and innocent

    Regards,
    looes74

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  15. To reply to Mut that I cite no law:

    Section 25(1) of the Town and Country Planning Act, 1976, Amended 1 January 2006, states, “If it appears to the local planning authority to be in the public interest that a planning permission granted under subsection 22(3)or an approval of a building plan given under any of local government laws should be revoked or modified, the local planning authority may order the permission or approval to be revoked or modified to such extent as appears to it to be necessary.”

    Note it does not say State Government but local planning authority. Even so, LGE has considerable leeway.

    This is not the place to be quoting law; anyway, these portions of Act 172 are well known to the powers that be. I had merely intended to state that LGE appears to be overly blinkered by his anxieties.

    Myblog puts it well: “Legal ramifications are part and parcel of governance”.

    I disagree with K on the matter of LGE having adequate legal advice from his counterparts in the party. Nearly all the learned bigwigs are criminal lawyers, not specialists in constitutional or administrative law.

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  16. Hill slope failure, you people always blame the Government. But when building collapse in the flat land, you turn around and blame the architect, engineer and contractor. Where is the logic?

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  17. If there is a lawsuit, can I count on everyone of you talkers here to contribute Rm1-1000 for legal cost and funds? I bet that you hypocrites will just disappear and probably shout – I told you not to do it.

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  18. The Penang State Government is certainly scared to go through any case that need adjudication by the present Judiciary, knowing well any possible biasness akin to Lingamnism.

    But the interest of the General Public is paramount even if there is any possible onslaught by third party forces who are keen to see the fall of the Pakatan Government.

    Holding the leadership of the State is totally different from being an individual. The Public expect the leadership to act against any activities that are adverse to public interest.

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  19. Poke LGE in the A. If he has not guts, then get LKS to take over.

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  20. Read more of the materials here. Someone is still very evasive talking about certain architect’s role in one of the 4 buildings. I am still waiting…………..

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  21. It is easy to know if LGE is doing NOTHING out of a genuine concern of getting sued. If he is really concerned then he would have BANNED all hillslope developements, full stop. He would not embark on a misguided mission to justify the developments of hillslope by setting up regulations and agency ala Hong Kong.

    LGE’s insincerity is evident when one compares his action and statements against the Selangor MB’s. Khalid despite strong lobbying by (certain quarters) refused point blank on further hillslope development. This is a mark of a leader truly committed to rakyat’s welfare.

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  22. LGE has, as can be expected very limited experience in running the State Givt and even less knowledge of legal issues especailly when there can be a possibility of his govt being sued. Knowledgable and qualified/experienced lawyers who believe in the PR Govt being the best alternative to the thuggish and greedy BN govt should not just stand on the side lines and comment or criticise LGE and his govt. Be a true Penangite/Malaysian and step up to the plate yourselves. Offer your skills, knowledge and support to LGE to kick the BN and their cronies where it hurts most – their Pockets!
    Stand Up and be counted, Ashtanga and company.

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  23. Of course state government can invoke state law to stop every construction work that put the public at immediate danger, but they can only legally issue the order after careful study of the project and have details scientific analysis and data to substantial the claim of “in the interest of public safety” in the course of future law suit. There must be sufficient doubts or documentary discrepancy in the former tender contract leading to probable fraud of the contractor or former official, then only state government can act in the eye of the law.

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  24. I’m not a lawyer, but I’m well aware that various government agencies which issue approvals or licences always have reserve powers to revoke previous approvals, if substantial public interest or safety issues are involved.

    And Good Luck to any developer who tries to sue the government – courts have long protected the right of governments to act in the public interest, as long as they are not seen acting in a careless manner or abusing their power.

    As a person who has spoken up often about responsible government and Rule of Law, I’m mindful that such powers are not to be invoked lightly – it must be based on evidence.

    It is acceptable for the Penang State Government to temporarily halt the hillslope project, call for an independent Geotechnical assessment (make the developer pay for the review !), and if the risk assessment warrants it, revoke the project.

    It is NOT acceptable for LGE to keep quoting fear of developer lawsuits as an excuse not to act to protect public safety.

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  25. I would strongly advised ashtang and his/her group of legal experts to come out and be counted as responsible and concerned Penangites to make your case to the Penang CM and provide advice on the legalities of the issues.

    You can make a difference to the state of Penang and I sincerely do not think that LGE will not accept your expert leagl view(s) if there are grounds for the Penang govt to take appropraite action.

    Please take the courageous first step as a member of civil society for the good and betterment of Penang and Malaysia and show the state govt the way to do it.

    Writing in a blog may sometimes not materialised into actions.

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