For the coming financial year (2010), the Penang Municipal Council is projecting a budget deficit of RM40 million based on revenue collection of RM230 million, two thirds of which come from taxes. Over the last year, the council should be commended for making extra effort to collect arrears from various parties…
It is therefore strange that the Council plans to blow RM30 million in capital expenditure in its 2010 Budget on a new convention centre project. This centre will be located within the premises of the Penang International Sports Arena (Pisa) at a spot where the present fountains are. It is believed that a further RM20 million will be allocated in the 2011 financial year.
Now, Pisa as everyone knows is an under-utilised white elephant, saddled with expenditure – hardly the most productive asset in Penang. So where is the logic in building another convention centre next to it? And how is it going to affect the already ailing Pisa, which is owned by the Council and managed by a private firm, Penevents (formerly owned by the PDC until a management buyout)?