Boustead claims RM60m from MPPP (updated)

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Just when you thought the proposed RM50 million Penang International Convention Centre was bad enough for Penang rate-payers, now Boustead Holdings Bhd has reportedly submitted a RM60 million claim to the Penang Island Municipal Council (MPPP) for scaling down its project in the world heritage zone.

The state government had earlier directed the developer to scale down its 12-storey hotel project to meet Unesco’s 18-metre or five-storey height ruling in the core heritage zone of Weld Quay.

Strangely though, instead of the Penang NGOs being lauded for protecting Penang’s World Heritage status, they have been criticised because Boustead has made a staggering claim.

This is a red herring. In fact, Penang had little choice but to ask the developers to scale down their projects or risk losing the world heritage status. Ironically, Boustead’s hotel will profit from the world heritage status, as the zone will now see an influx of visitors.

Instead of lambasting the Penang NGOs, the state government should haul up those responsible for approving the project to find out why heritage guidelines were ignored. How could a 12-storey hotel be approved in the core heritage zone? Demand answers and name names. Who exactly in the previous administration was responsible for the approval?

Besides, didn’t Boustead know about the heritage guidelines for the area when it planned the hotel?

A government that upholds CAT should have no hesitation in conducting an independent in-depth inquiry and making the findings public.

Incidentally, according to its 2009 Annual Report, Boustead Holdings Bhd is 58 per cent owned by Lembaga Tabung Angkatan Tentera. This is the same Boustead that has “ventured into the submarine maintenance business where we will be providing ISS services to the Prime Minister’s Class Scorpene Submarines, KD TUNKU ABDUL RAHMAN and KD TUN RAZAK, for an initial period of six years”. Check out the protracted negotiations on the maintenance agreement here.

Also coming under Boustead are the BH Petrol retail network, Cadbury’s Confectionery Sdn Bhd, and Boustead Sissons Paint Sdn Bhd.

As a whole, the Boustead Group posted a profit before tax of RM501 million on the back of revenue of RM5.4 billion in 2009. Its property division alone posted a profit of RM106 million.

In contrast, the MPPP, on a tight RM40 million deficit budget for 2010, is managing public funds derived from an annual revenue of only around RM220 million.

Coming on the back of news of the RM50 million PICC project, this claim on public funds therefore is certainly not good news for the MPPP, the Penang rate-payers and the Penang public.

Penangites should definitely support the MPPP in contesting Boustead’s claim all the way.

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wira

Gerak K. Please do not be naive. There is no doubt the BN government have built plenty everywhere but at what expense to the rakyat? For every ringgit spent, an estimated 50 sen or more (allegedly) goes to line the pockets of their cronies thereby ballooning the cost of projects. That’s also how our government paid RM5 for a packet of maggie mee. Just last decade alone saw an estimated USD200 billion lost through corruption. You may google for this information. What is there left for our children if BN were to be given the mandate to continue to corrupt?… Read more »

Gerakan K

Please do the right thing. If this compensation is in favour to the developer after the legal action then LGE must responsible and RESIGN from the post immediately.

kee

Bravo Yang !!!

I dont know why some of us here are behaving like as if Lim Guan Eng has robbed their wives or maybe girl friends…

Some of the readers’ hatred (you know who you are ya) on Lim Guan Eng is really ridiculous and i think, it only shows our own childishness.

Very shameful la !!!

Can i call you, those readers, a bunch of losers !!!

Hidup Pakatan !!!

P/S havent u heard, everybody loves Lee Guan Eng?

O

Hello Kee,

How are you? Just had not seen your comments the past couple of days.

Ya lah, agree with your comments.

Cheers bro!

O

Hello Kee,

How are you? Just had not seen your comments the past couple of days.

Ya lah, agree with your comments.

Cheers bro!

kahseng

A company acting like is just angling for other favors (land deals, perhaps) from Penang, or acting as attack … for BN. If there is any wrong doing or bribery in the orginal approval, the current Penang government can investigate, dig up some evidence, and use it in court or use MACC to neutralize the threat of law suit. — By the way Anil, any further details on this other issues “Penang Chief Minister Lim Guan Eng had rejected the request by Penang Turf Club to use the old rate to pay the quit rent?” If true and unresolved, and… Read more »

Iron

You a member of the Turf Club, Kah Seng?

Oh btw, I agree with what you said. Losing this green lung would be another blow to the Penangites.

But then, Lim Guan Eng doesn’t care, does he?

kahseng

Nope. I don’t like snobbish clubs.

nkkhoo

Boustead is controlled by Armed Forces. BN government will make use of Boustead to press Penang PR for political reason.

I suggest LGE let Boustead to go ahead to build their highrise hotel as approved by previous BN government instead of paying them RM60 million compensation.

Melaka will also be struck off from the world heritage list as Penang IF Boustead Hotel is found violating WHL guidelines. BN and PR both are losers from the eyes of Malaysians.

romerz

Without giving too much away in case the “enemy” is warned, many non-political “brains” (from developers, to lawyers and all those capable of rational thinking – all ordinary Penangites and Malaysians) will not allow LGE and the state government of Penang to face this alone. A lot is going on behind the scenes Anil, and I can tell you that Boustead is not going to have it easy. All I will say for now is that LGE had been advised to play hardball and fight fire with fire and so far he is receptive. Once we can confirm the legality… Read more »

Sean

It’ll be interesting to see the outcome in Hulu Selangor. I’m sure the same people were saying “[Bagan Pinang] will be BN death knell once and for all”. N9 is a BN state – voters aren’t stupid. There’s zero prospect of a change of government before GE13. If you’re in a BN state, voting an opposition candidate in is likely to (have repercussions) on your neighbourhood. I would expect BN-state by-elections to show no change or a slight improvement for BN. PR state elections are more difficult to call. BN representatives are likely to have very wealthy sponsors who have… Read more »

O

Sean, 1,500 majority! That is my prediction and may the voters in Hulu Selangor, please bring back some sanity to our political system! We had have non stop issues one after the other since the first day of 2010, will the voters of Hulu Selangor forget so easily? These are real big issues created by UMNO Baru/BN, will the voters of Hulu Selangor fail us? And now what have you gotta say with the “typo error” at myProcurment? 6.5 billion for 6.5 million? Come on, even a secondary school kid, can spot the difference. And now another one, 7.7 million… Read more »

abc

tony lim,

agree with u. lets get working. tell BHP to eat … together with UMNO sycophants such as Gerakan K and running … Ong.

lets start wotking on boycotting anything thats LTAT, and that includes bread, petrol and anything from LTAT group. game on, tony?

abc

gerakan K,

go … and enjoy BN’s largesse.

… go and enjoy … UMNO sycophants, gerakan K.

K

I wonder what kind of defence MPPP can put up in a court of law after they themselves approved Boustead’s plans.

This is a no-win case for MPPP and the only way out is to compensate Boustead with other projects. In either case Penangites will be the losers.

That the Cheap Minister has pinned the blame on NGOs again shows what an imbecile of a leader he is.

Tony Lim

Penangites must boycott Boustead retail oil business under BHP Petroleum. Boustead is BN Government GLC company.

Iron

Penangites must boycott Boustead retail oil business under BHP Petroleum. Boustead is BN Government GLC company.

Are you going to boycott the Angkatan Tentera Malaysia?

If so, then you can tell others to boycott Boustead.

If not, please, tell us something that makes sense.

wira

If I suffer loss because of a stop order, I would sue if it’s not against my interest to pursue.

YAB Lim telling others that they can sue makes no difference to the equation.
Anyone with an ounce of intelligence will know his/her legal rights.

At least with this PR government, if they make mistakes, we all know.
If this were BN, they would sweep this under the carpet and pay compensation through dubious means.
You and I may never hear anything further from it.

I definitely prefer transparency in government anytime !

wira

Since Penang was given the heritage status together with Malacca in a joint program, if Penang were to lose the heritage status, so would Malacca.

This is our trump card to force PutraJaya to come out with some leverage to apply to Boustead.
We should make use of it. 🙂

wira

There were 4 heritage infringed projects approved before the announcement of the heritage status. 3 were approved by the previous administration, 1 by the present group. If the previous administration cannot be faulted for approving those 3 projects when they had ruled the island for the past 51 years before they were dethroned, I think we can give the present government the benefit of doubt that they weren’t aware. Why only Boustead is considering claiming the state while the other 3 are not? Would it make any difference to this company in the pursuit their claim to Penang state government… Read more »

Iron

Don’t care if it’s the previous or present administration doing the approval, it boils down to this: The right hand doesn’t know what the left hand is doing. I mean, if one is to apply for the World Heritage status, there ARE requirements that have to be met, including the no more than 18 Meter high limit for buildings in the heritage area. As I said, I don’t care if it’s the previous or present government, both CM (Koh Tsu Koon and Lim Guan Eng) must answer to the screw up. In corporate sense, they being the CMs have failed… Read more »

O

Thank you for your clarification. At least we are clear without needing to resort to name callings and blaming. Sometimes, really, it is sad to see any one trying to dominate the discussions without getting their facts right. It does not mean you win when you shout the loudest!

Ong Eu Soon

Read the sun article on Boustead wants compensation for scaling down project, http://www.sun2surf.com/article.cfm?id=45207

… Mark my words, LGE will (probably) compensate the developer no matter how. One of the way is thru’ (dishing out) our public lands.

Gerakan K

The future of Penang is not so good. Money may be saved from spending. But it leak out via santa claus program, compensation and unnecessary projects. Any conspiracy work involved here ??? MACC must step in to investigate. No one is above the law even you idol Mr Lim included.

Yang

Don`t worry, the future of Penang is in good hand. It won`t go bankrupt. Look at MPSP and how LGE is able to reward the senior citizen, then one will understand that the PR administration is prudent and able to manage it finance.

Gerakan K, Your comments is like a jumble mumble without any concrete facts. Just blurting.

Iron

Of course Penang won’t go bankrupt.

They got us, the Penangites, who will have to foot the bill.

They, and I mean Koh Tsu Koon and Lim Guan Eng screwed up, and we, the Penangites, end up having to pay through our nose, with higher quit rent, water bill, and whatnots.

It’s so easy for you to say “Don’t worry”, your idol screwed up what !

O

Gerakan K,

If not for the eagle eyes of Tony Pua, 6.5 million probably will become 6.5 billion and 7.7 million would have become 77 million with the excuse that is was a mistake, a typo error.

If you are the boss, and if your subordinates commit such mistakes which may bankrupt the company or cause colossal losses to the Company what would you do?

Do you genuinely believe that those were mistakes?

Gerakan K

Put it this way. Show me otherwise it is not a mistake. Got any proof ???

Gerakan K

Wake up to the fact now. Look at the approval date, it was after GE12. Finally, I’m not mole, plant, soya bean, kang kong or whatever vegetable planted by PR. PR is a sinking ship. Look at DAP Chairman, ie Karpal Singh behavior in Parliament yesterday. Very shameful you know. Now he has 10 days off and no need to attend Parliament sitting. By the way what is the point of shouting “dictator dictator dictator” in Parliament ???

Yang

Don`t worry, Boustead won`t get a single cent. Calling the speaker a dictator is to tell the world what a sham democracy Malaysia is. Just as Anil is doing now for his blog. PR is now on a stronger footing after the sacking and resignation of 4 MP. That was the right & best thing to do. Where are the many more that will be leaving. Sad to say that, that idiot PM Najib thought that with these 4 in his fold he could use their idiotic and incessant (talk) in Parliament to sway for more defection and influence the… Read more »

K

Yang…

My guess is that it is Pakatan which is going to get thrashed soundly in Hulu Selangor.

Perhaps you might be living under a coconut shell (or KOMTAR), but the support for Pakatan has nose dived dramatically recently while the support for BN has shot up….

DAP’s on the way out and when the new govt takes over, all the … deeds of the Cheap Minister will be exposed, along with his cronies.

Yang

Well just wait and see. Mark my word DAP & PAS will be very intact. No matter how MCA or Gerakan tried to portray PAS as a religious extremist party, we now find UMNO even worse.The Chinese and other non Malay will continue to support PAS. The only problem is with PKR but with Zaid around and the sacking of the 4, PKR has somewhat stabilized. Gerakan can forget about Penang. Even if BN could captured Penang, you can be sure the next CM would not be from Gerakan but either MCA or UMNO. LGE has nothing for us to… Read more »

Gerakan K

Yang,

Baseless accusation is what the opposition is trying to do nonstop. How many mega corruption cases being exposed by the opposition since GE12 ???

At least UMNO leaders know to apologize when “terlepas cakap”, but how about Hasan Ali–the PAS MP that very famous for his heroic act against the legal selling of beers ??? He never says sorry to everyone.

O

Gerakan K,

Hallo Bro! Apa “terlepas cakap”? Do not be naughty ok? It had reached a stage where the non Malays are being insulted and intimidated at will by these UMNO Baru/Perkasa, so much so, that they are used to it and just could not be bothered… !

By the way is Gerakan, MCA and MIC still in the BN? Or has it been replaced by PKR independents, Perkasa and HRP? Read that the BN convention in Shah Alam, they do not even want to acknowledge the presence of those from the MCA. BN = UMNO Baru?

O

Yang,

Do not rule out the possibility of Wee Choo Keong leaving to be an “independent” as he cannot see PKR being “subservient” to DAP? Anything is possible during these days … ! Just watch and do not be caught by surprise!

Anything goes in desperate BN! …

O

Yang,

Sorry, I mean before the Hulu Selangor by election?

nkkhoo

When it was approval date?

Iron

When it was approval date?

Preliminary approval was before 308.

Final approval, signed by LGE.

Meaning? Both Koh Tsu Koon and Lim Guan Eng have to answer for the approval of the proposed 12 storey project at Weld Quay belonged to Boustead.

Iron

For any project, and I mean any project, there will be several “approval” stages. The case involving Boustead was fermented way before 308. The preliminary approval was of course, issued by the Koh Tsu Koon administration. But as any construction plan goes, there bound to be some changes — either the government side objects to certain structure or structures, or the owner/builder side wants to add something onto their initial plan they’ve submitted to the government. So … in the case of the Boustead property, by 308 the thing wasn’t finalized. Which means, it was finalized AFTER 308, which means,… Read more »

O

Public interest protected Anil? What do you think of the “mistakes” pointed out by Tony Pua? Do you think they are actual mistakes? So many decimal pointage differences Anil? You buy that? Now only two cases had been detected, how many more “mistakes” are there really? What then is your opinion on the contribution of Tony Pua and how would you without bias rate this politician? Liew Chin Tong is another MP with the calibre to put to shame those lawbreakers, and he needs to start digging with Tony as well?

nkkhoo

Those seal the final deal has to accountable for his signature. I’ll waiting for Anil’s finding.

O

Gerakan K, Looking into the quality of debates and quality of lawmakers, the Pakatan clearly outshines BN in every way. Just look at our Parliamentary debates, we have the likes of Sri Gading and now the re-energized Kinabatangan dominating the proceedings and when these people together with Pasir Salak speaks the whole day is gone, and what did they do? They will play to the gallery and spewing sexist remarks at the other women lawmakers! Is that what you want? But, that is the sad state of our Parliament, people like Zahrain, Zulkifli, Ibraham Ali dominating, what can they bring… Read more »

Gerakan K

O, Ok, I just pick two of your list of idol: 1) Karpal Singh, said “Dictator dictator dictator” to the speaker SUSPENDED 10 DAYS (NOTE: with this sudden days off he can join cuti-cuti Malaysia program during this period) 2) His son, Gobind Singh allegedly claimed that Datuk Seri Najib Tun Razak was (allegedly) involved in a murder case SUSPENDED 1 YEAR (NOTE: with this sudden days off he can tour the Europe comprehensively) p/s: these are the prime example of wasting people votes. These two MPs got quality ??? That is why we need full time MP and not… Read more »

kingkong

In the first instance UMNO/Gerakan appointed judges, dewan speakers and deputy speakers are no ISO standards … They are dictators themselves using their powers

O

Gerakan K, Karpal Singh is undoubtedly one of the best lawmakers we had seen in our parliament! Before the decline of the standards of of Governance, this is one watchdog, that can always always be trusted to carry out his duties without fear! He shouted “dictator”, because he had being refused his rights, and Karpal Singh is no fool, to get himself suspended, it is those in BN who are worried of his presence, because this is a “no holds barred” politician, and he will speak the truth for the Rakyat, even at the cause of being ISAed! Do you… Read more »

Gerakan K

O, “mudah lupa”. That is why the opposition can easily manipulated its supporters like you. Aha! I almost forgotten that your idol is always innocent angel with wings attached, right ??? Concreting the Botanic Garden is all right, correct ??? Flattening the Kg Buah Pala too, is all right ??? With this level of performance, you will very soon promoted to chief cheerleader.

O

Gerakan K,’ My dear bro. How has the Opposition manipulated us? No! No one is my political master! I had been very vocal against what is happening in the Botanical Gardens as it is one the better parks in the island. Anyway, it is just the Federal Government’s ploy to destruct the PBG with their Federal Government projects! But, the PR should have voiced their opposition to the project which is destructing the greeneries! All these are vicious projects by the Federal Government to destroy what is dear to the people! Another thing bro, when was the last time you… Read more »

Gerakan K

BN never destructs but is building the future like providing more schools, teachers, and infrastructure like road, electricity (eg: more hydropower plants for Sabah & Sarawak), high speed internet service (eg: HSBB, RM2.8 billion USP fund for broadband programmes), etc. O, I give few example of destructive acts, eg 1st August 2009 demonstration that organized by the opposition, wasting time in Parliament debating APCO issue (very important and urgent huh ???), nonstop badmouthing 1Malaysia concept (perhaps they wanted 1Taliban instead ???), and so on. O, maybe you are not from rural area so that you have taken all these works… Read more »

Steven ong

hello Gerakan,

you have not wake up from your dream, still supporting barang naik.

Sean

Just out of interest Anil, are there ANY existing buildings in the heritage zone that top out above the 18m? How are they affected by the designation?

Iron

1 meter = 3.28 foot.

18 meters = 59.04 feet, or about 5 storeys in today’s design.

There are a couple of buildings inside the designated area which are close to or exceed that height, but they are “exempted” since they are old buildings themselves.

The requirement is that no NEW building be permitted to be higher than 18 meters.

In a way, I do not agree with that artificial limit because in other world heritage sites (in other countries) there ARE buildings much taller than 18 meters.

1Malaysia

So who’s going to pay for this…? The Rakyat again?

Iron

So who’s going to pay for this…? The Rakyat again?

This case ask LGE to pay la !

He basically (admitted earlier) … the Penang government (might have) to pay what.

donplaypuks

Since it’s Boustead DCNS, what’s the bet that this is a JV between Boustead and DCNS (France) who manufactured the scorpene submarines? And guess who will be doing the real work and who might just be the kind of rent seeker PM Najib promised to stamp out? It might also help to remember that Boustead bought a (50%?) stake from Razak Baginda of Altantuya fame AFTER his Perimekar S/B had secured the so-called “facilatation and services” (No, definitely NOT a commission as confirmed again by Defence Minister Hamidi yesterday) contract for the two scorpene submarines, the 2nd of which has… Read more »

mary anne jane

people here cakap boleh bikin tak boleh.

Iron

people here cakap boleh bikin tak boleh.

U gimme RM 60 Million and I immediately bikin it !

Just tell me when and I’ll gip you my account number.

Anthony Tan

There are three things to be done.

1. Expose the the people who approved the project and if possible dig deeper into why and how it was approved.

2. Dear Penangites, are we going to sit still and let this government link company to bully us. We should start a fund to defend and counter sue them.

3. Look for lopholes to stop the project totally and make them come back begging.

Don’t play, play with the people of Penang!

Eloi

Tit for tat action from you know who.

They were dealt a blow to their reputation with the cash incentives handed out by Penang Government. LGE and his government was being praised for being caring to the less fortunate. Getting hugs and kisses was too much.

Get ready for another similar play-acting on the media very soon to counter the Penang’s LGE’s – People First effort.

People on Welfare get ready for some added goodies from you know who!!

SamG

On a slightly different issue, do a check on http://www.fullhouse.com.my
Look for apartment/condominium above RM1 million in Penang. I got 231 hits!!
So you can see how speculators are really pushing up the prices of houses in Penang
MPPP or State Govt should see how they can put some form of tax on the transfer fees or stamping fees or whatever to discourage speculation. This also pushes the costs of housing for the middle income group beyond reach

gotta

…! A GLC skinning the rakyat again. What kind of a country are we living in?