An email landed in my email inbox and from the looks of it, the Penang state government needs to clarify a number of issues including land conversions: has the state government converted any land from leasehold to freehold so far?
In particular, was approval given in June to PDC Heritage (51 per cent owned by YTL) to convert its prime seafront land from leasehold to freehold status? Was the Penang State Assembly really misled, as the NST alleges (see here and here)?
You know there is a transparency or communications issue when even a church blog is compelled to ask for full clarification on various issues.
On land reclamation, developers are probably making a lot of money from prime land reclamation work. The question is, what does the Penang public get in return for allowing these developers to reap huge profits from such work? Was there a concession agreement and how was it awarded? What’s in it (financially) for the people of Penang?
Could we have this information – even if the approvals were granted during the BN era? Were there detailed EIAs, reviewed by expert panels, complete with modelling for the impact on the coastline (including those stretches further away) and the change in sedimentation patterns?
This issue is of more than passing interest. It has been reported that the Penang Port and the northern channel needs to be deepened now and this may cost a tidy sum, which could be borne by the public. That’s why we need to know if any proper sedimentation study was ever been done around the Penang coastline to gauge the impact of land reclamation work due to property development on the island and the construction of the North Butterworth Container Terminal on the mainland.
Finally, what is the status of the proposed housing development board, which reportedly may end up as a public-private initiative, to look into affordable housing for Penangites? (In contrast, Singapore’s HDB is a statutory board, a public housing authority under the Singapore Ministry of National Development. The same goes for the The Hong Kong Housing Authority, which is a statutory body established in April 1973 under the Housing Ordinance. Its role is to “develop and implement a public housing programme which seeks to achieve the Government’s policy objective of meeting the housing needs of people who cannot afford private rental housing.”)
Frankly I don’t much issues with Anil concern on this matters. Yup, Penang state government must have clarification
However, like it or not, some policies might not be well received by the public. Hence, the ability of disseminating information important.
Singapore HDB flats success lies on the CPF funding provided by Singaporeans, PRs & in the early days, Malaysian work permit holders
LGE must use funds effective. If necessary, raise taxes. Provident Fund or Set up Trust fund
Scotland & Northern Ireland are allowed to raise 3% above national taxes for state development
Can Penang government given the free play?
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The issues brought up here are absolutely crucial to the state government. NST has basically carried a story accusing LGE of misleading the House; but does not say what documents and who produced them for readers’ discussion. We’ll see whether there will be a reply and NST will carry it.
HDB in Singapore would be similar to our own PNSB, wouldn’t it? It was under EPF last I heard and had generous access to funds (although I saw it as a longstanding stunt to (grab) our money and build substandard housing while reaping the publicity).
What does Penang have to offer; it has limited resources! But still it would be great if Penang would move forward with affordable housing (I am sure BN will be shoving sticks into the spoke)!
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LGE (may have chosen) not to reveal the truth. The truth will prevail unless the project really did not exist at all. We should remember the controversy of Queensbay land conversion from leasehold to freehold which go against the NLC. LGE blamed KTK for the fiasco, now he has no excuse not to know the rule. If the land conversion issue is real, LGE should explain why he chose to go against the NLC and convert the land at the expense of the public interest. LGE should explain is the Queenbay land conversion a good example for he to follow? Is he ever ready to flout the rule for any so-called DEVELOPMENT?
In his defend of KTK on the Quuenbay land conversion, LGE 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.
Is he now view the land as state land and not a foreshore too? Is he sincerely believe the land is not bound to the NLC proviso?
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Can we trust a CM who use the loophole of the law, to (deprive) Penangites of a prime seafront land? Is it because the land is a state land, LGE can use his discretion…?
A foreshore is a foreshore no matter whether it is a state land or not! LGE has the moral obligation to protect public interest …
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Oh sure. NST would like to poke Penang government at an issue that is to enrage Penangnites. Wonder why UMNO is investing so much money to work out the KBP and this issue.
Having said and done, I think that is the ideal that we want.. transparency. I do however not confident that the civil service would respond fast to these requirement. At least Penang is compact and more manageable.
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On the Queenbay land conversion issue, LGE said that he is not quite agrree to the land conversion decision, but he has to comply as he has no choice. In this land conversion issue, is he really want us to believe that he really has no choice again? Is LGE now referred to section 76(aa)(iii) of the NLC which says land could be converted “where the State Authority is satisfied that there are special circumstances which render it appropriate to do so”? What circumstances is that?
The NLC proviso prohibit the state from re-alienating or converting any part of the reclaimed foreshore or sea-bed to freehold land. Is LGE want to fool us again by telling us that the prime seafront land is a state land not a foreshore? Seem like LGE has his own dictionary that make a foreshore land, which is a state land, not a seafront land….
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Crucial clause overlooked
Guan Eng missed proviso when defending land conversion
Himanshu Bhatt(Sun)
GEORGE TOWN (Oct 8, 2008) : Chief Minister Lim Guan Eng had defended the controversial conversion of land housing the Queensbay project, reportedly worth RM3 billion to freehold, at the Penang state assembly in July, but had overlooked a vital clause in the National Land Code (NLC) 1965.
It is learnt that Lim (who is currently away in the United Arab Emirates on an investment mission) had in a written reply reasoned that the NLC allowed the state to convert the land from leasehold to freehold.
He made the reply to a question from Batu Uban assemblyman S Raveentharan who asked how reclaimed coastal land had been made freehold in Batu Uban and Pantai Jerjak.
In his reply, however, Lim missed a crucial proviso in the NLC.
He reasoned that the freehold status was given as an effort to revive the project after it was left unfinished.
(The project had been stalled as the original developer Eternal Resources Sdn Bhd was affected by the economic crisis of the late 1990s.)
Lim referred to section 76(aa)(iii) of the NLC which says land could be converted “where the State Authority is satisfied that there are special circumstances which render it appropriate to do so”.
It is now learnt that Lim was sent a letter by a senior conveyance lawyer in Aug, expressing concerns about his plan to convert residential leasehold land, including areas that had been reclaimed from the sea, to freehold.
In her letter, 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.
When contacted, land commentator Prof Salleh Buang, who is currently a visiting professor at Universiti Teknologi Malaysia (UTM), said the NLC was very clear that the lease for state foreshore land cannot exceed 99 years.
“The law says it very clearly. It is on record that you cannot make such land freehold,” he said.
He stressed that the state should be careful to ensure public access remains in foreshore areas.
“If you allow seafront to be freehold, what would happen to open public access to the area?” he asked.
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I think LGE has again made a mistake. Let’s wait to see what his reply will be. If it is another round of ignoble silence then it would really be a shame.
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Many may have thought that LGE may has overlook the crucial provisio in the NLC when he defended KTK on the Queenbay land conversion controversy. The truth is being revealed now! LGE has since wanted to convert the 1.4ha seafront site, adjacent to the 124-year-old Eastern and Oriental (E&O) Hotel along Lebuh Farqhuar, from leasehold to freehold. Even this means he is going to flout the NLC and betray the voters who voted for change.
I can promise him and the developer, this issue will not go by unchallenged. If needed, I will start canvassing for supports to bring this land conversion case for a judiciary review.
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Ong
Go ahead and let us see the big fireworks otherwise you are another big cannon like MP Wee accuse LKS about using the APS to buy car and make big bucks.
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While the NST is hardly the paragon of impartial reporting, they generally report responsibility if compared to almost all of the pro-Pakatan alternative media.
Again, we must allow data and facts to speak for themselves and guide our opinion. As such, we must give the opportunity for LGE to rebut/clarify this issue as it of a very serious nature.
From we have seen so far, the Cheap Minister’s reign has been anything but CAT. His cozy relationship with the Big Business and a disdain for the environment & heritage in the pursuit of “development” has been well documented.
If LGE does not give us a satisfactory explanation over these issues, it will only make his already tattered reputation slip further down the slippery slope.
It is indeed an omnious sign for LGE and Pakatan that people on the street (and not Pakatan cheerleaders) already started to compare his administration unfavourably with KTK. If LGE keeps up with his current policies and adopt an arrogant attitude to public opinion, then he will be an one term CM for sure.
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Dear Penangnites
Aint it clear that Lim Guan Eng n DAP have reneged on the PROMISES made to Penangnites to save the natural environment on Penang????
All the Projects which was initialy approved under BN thought delayed n hampered is now proceeding on the FAST TRACK under Lim Guan ENG!!!!!
Lim Guan Eng can easily blame ” Koh Tsu Koon ” for everthing as though Lim Guan Eng is INNOCENT n BLAMELESS!!!
(These are some questionable projects):
1. Queensbay Land at Pantai Jerejak( Seaside):
2. IJM Reclamation at Pantai Jelutong ( Seaside)
3. EO/YTl- Seaside- Land Conversion
4. Penang Botanic Garden- Land Alienation
5. Kampung Buah Pala- Land Alienantion
6. PORR- Land Acqusition
7. PGCC- Land Conversion
8. Penang Hill Development- and Conversion
9. Tanjung Bungah Hillside-Conversion
10.Teluk Bahang- Eco Resort ( New Project under LGE)
Penangnites is being taken for ride by Lim Guan Eng (administration) and Developers!!!!
Mainstreams media like STAR (MCA) n major Chinese dailies (appear beholden to) the Developers (and sidelining the) serious damages to Penang!!!
Damages to seasides and beaches are serious and the consequences are irreversible!!!!
Kindly Take Note that the Common Denominator between the LGE n BN is the same Developers.. IJM,YTL Nusmetro, !!!!
Whichever Projects that Developers had problems and delayed with Koh Tsu Koon is now moving smoothly because the Oppositions have become the Ruling!!!
Penangnites have to act immediately to save Penang Natural Environment!!
rgds
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Dear all,
no hope for people in penang under LGE. Even the lost of billions of investment is nothing for its supporters. Yes, Penang soon to be a concrete state. If someone earning something when there is development approval, I believe that person will be a billionaie in within 5 years.
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Gerakan is like UMNO mentality. With MACC how can opposition be thousandaire let alone billionaire? Even MACC question one spendind 2K. But your Toyo has millions right in front of us., It is us who will die and Gerakan K hopes to strike lottery
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What ever the deal was,purcheser.i.e the people is always at the loose end,whereby the law made such a way that we can’t protest our asset financialy nor legally…
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Basically no business man wants to see the government going back on its words even though the approval was given by a previous administration. To re-decide otherwise based on a questionable (ie. interpretable) provision in the NLC will invite legal action by the aggrieved party for a sum that the state may find hard to pay if she loses.
So please judge the state government by her new decisions and not by what it did not do to stop approvals which were given by the previous administration.
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This new conversion status of PDC heritage project is not done by KTK, it is done recently! Why go against the the very own law that protect the public interest? Stop being LGE apologist by twisting the fact!
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The PDC heritage is a joint venture of the state government, there is no way it will sue the state government for compensation. In the first place, the decision is against the law. Why can the state government be a law abiding government?
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Lineclear
This is an absolutely shocking piece of information ! Thanks for sharing with us such crucial information that every right thinking Penangites must be aware of.
I think LGE must come forward and explain each and every of these issues in accordance with the CAT principle.
If we Penangites don’t stand up and demand full explanation from the Cheap Minister now, it will only enbolden him to continue…
At this rate I think Penang is surely transforming from Silicon Island to Concrete Island.
KTK was often called as Penang’s top salesman for his efforts in selling Penang to bring in FDI but LGE has taken the word “selling” to its literal extreme by actually selling the state. At this rate Penang will be soon become Penang Sdn Bhd with Big Business owning the state and wage earners like you and me being edged out of “development”. It is not inconceivable that by end of LGE’s tenure we all could be living in Kulim or Nibong Tebal with the entire state being re-zoned for “development” to accomodate Big Business.
Gerakan K :
I agree with you, my hopes for Penang under LGE is fading fast and I see doom laden future for all Penangites.
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Lets come up with a list we can send to LGE.
Feel free to add:
1. Squatters [Yes]
2. Development [No]
3. Free hold property [No]
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Press Statement by Penang Chief Minister YAB Lim Guan Eng
In Georgetown, Penang On 15.10.2008.
The New Penang State Government Has No Plans To Follow The Previous BN State Government’s Policy Of Circumventing The National Land Code (NLC) By Converting All Reclaimed Land From Leasehold To Freehold Status.
The new Penang state government has no plans to follow the previous state government’s policy of circumventing the NLC by converting all reclaimed land from leasehold to freehold status. Under Section 76 of the NLC a state authority cannot dispose of “any part of the foreshore or sea-bed for a period exceeding ninety-nine years.” In other words the NLC expressly prohibits the state authority from converting foreshore land to freehold to protect and reserve coastal areas for public interest.
However I have been advised that after reclamation, there is no more seabed and foreshore, and therefore it is within the state’s right to give private individuals freehold status for such areas. In other words, once a particular area is reclaimed, the foreshore and seabed cease to exist factually, physically and legally. The new government will not choose to exercise its powers to convert reclaimed land to freehold.
Whilst I disagree with the previous state government’s arbitrary policy of converting reclaimed land to freehold, we have been advised by both the lawyers and consultants with the Penang Development Corporation(PDC) and the State Legal Advisor that :
this conversion is legally valid as it was gazetted as state land and no longer as foreshore land;
the state government has to comply with the consent order directed by the Penang High Court to give effect to a “scheme of arrangement” to rescue the Bayan Bay project with a package that included converting what was once seabed and foreshore into a reclaimed land that has been converted to freehold.
All the parties involved had exercised their legal rights fully in court before withdrawing its final appeal to the Federal Court; and
Any attempt to refuse to comply with the consent order by the courts would attract substantial damages to be paid by the state government.
The Penang state government hopes that the public including some ADUNs and NGOs would not equate the necessity to comply with the scheme of arrangement decided by the previous state government as concurrence or even endorsement to converting reclaimed land (that were previously foreshore or seabed) from leasehold to freehold land. Even though the official legal view is that whilst the state authority can exercise such powers, the new government would not exercise such powers.
Gerakan new President Tan Sri Dr Koh Tsu Koon is advised again to co-operate with the new state government to expose more land scams such as those done in on Bayan Bay Development project. and clarify or pour light in the one-sided agreements done to the detriment of the state and rendering the NLC a meaningless.
It is regrettable that despite the new government’s repeated calls to promote CAT, the old state government has still refused to step forward and come clean on the land scams that have caused losses of hundreds of millions of ringgit.
LIM GUAN ENG
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“All the Projects which was initialy approved under BN thought delayed n hampered is now proceeding on the FAST TRACK under Lim Guan ENG!!!!!”
How? I don’t understand how a person can this type of statement. Ok, the projects was approved by the previous government, now under the new government, how the new governement FAST TRACK the project? Did the new government these developer dateline to finish off the project or else there will be a pernalty? If not, How to FAST TRACK? When making comment, please use a bit of your brain. Don’t simple hamper aas you like. You make an idiot out of youself.
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Some of the projects were submitted pending approval while KTK is in power. A good example is the PDC Heritage Hotel project. The delay by KTK probably because he knew that it is obviously against the NLC proviso. But why LGE gave the approval for the conversion from leasehold to freehold. If you guts still think many people are still with LGE, you better wake up now. I am starting to canvass for supports. So far the response is very encouraging, seem like a lot of people have grievances against LGE administration. We will meet on coming Friday nite. Anyone who are interested can contact me. We will raise a legal fund to bring this case to court for judgement. We will put a stop to all those non-sense that are taking places in Penang. We will lobby Anwar to pressure the component parties of Pakatan to toe the line and become a law abiding government.
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Don’t waste time and being granny. Go ahead and sue the government. Be LKS of Gerakan parti. we will cheer you and don’t be a coward after all the canonning here. Hope to hear the news in tomorrow’s paper to sue the Government. if not you talk without facts.
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Ong Eu Soon,
Good luck to you if you manage to raise enough fund to bring this case to court. It seems to me that you are a person that do not beleive in whatever explaination other people gave. You tend to have you own interpretion and your own doing, be it LGE or KSK government. Previously, you says that you have the chance to bring KSK down and now you are in the mist of bring LGE down. To you, you yourself and your thinking is only one that can make one a perfect CM. Good luck
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