Almost all the useable land on Pulau Jerejak near Penang Island was sold to a resort, majority owned by the federal government’s UDA Holdings Bhd. And Penang has incurred a RM19 million RM30 million loss on the deal.
The Tropical Island Resort, which manages Pulau Jerejak, is a 51:49 joint-venture between UDA and the Penang Development Corporation. How could PDC (and by extension, Penang) end up with only a minority share when the island is part of Penang? UDA, for its part, was delisted from the stock exchange in 2007 and is now a wholly owned subsidiary of the Finance Ministry’s Khazanah.
PDC has incurred investment expenditure and debt of RM19 million. Another RM11 million in land premium has not yet been paid to the Penang Land Administrator. Shockingly, even though the land premium has not yet been paid in full, the title deed was still issued by the previous administration, said Chief Minister Guan Eng. If that’s the case, the resort must settle what it owes to the PDC and the Penang state government, which in turn must seek legal advice to protect Penang’s interest.
