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More updates soon.

Anil

The Ghost of Penang Future: State govt should establish “green” credentials fast

hillslope development

Cover-up job: The rape of hill-slopes continues (Photo credit: Rhino)

Last Friday, another mud slide struck Penang on the stretch of road between Tanjong Bunga and Batu Ferringhi. It was not surprising given the sort of hill-slope development taking place. This one occurred in the vicinity of the Ivory building project. You can see from this picture the sort of hill-slope development taking place in the northern part of the island. They must be crazy if they believe those plastic sheets will stop erosion.

In the event, tractors had to be called in to clear the mud from the road. And traffic was backed up for quite a bit. Here’s what it looked like even after the mud had been cleared from the road.

jam

Penang turning into one huge parking lot (Photo credit: Rhino)

Not much fun for all those motorists caught in the jam.

Yesterday, it rained again, and one concerned resident in Tanjung Bunga told me the sea looked a mess of angry brown – probably from the silt. If you are flying above Penang Island, you can easily notice the water off the immediate coast of Penang looking a murky brown before it blends into the stunning deep blue and green hues of the Andaman Sea further north.

It’s time for the Penang state government to assert strongly that it will defend the environment and ease traffic congestion with more sustainable solutions. It has to rein in developers and tell them in no uncertain terms that the rape of the island and its beaches and hillslopes is not on.

But I fear that politicians, being politicians, will plan only for the next five years – instead of looking for more sustainable long-term solutions.

Such short-term solutions are aimed at winning again in the next general election. This means atracting more investors (never mind what kind) and promoting “development” (with just lip service to protecting the environment) and quickly building bridges and highways and outer ring roads to ease traffic congestion on existing roads. This is what the state government is doing by supporting the second road bridge etc.

But the problem is these short-term solutions might not be in the best interests of Penang and its people in the longer term, say beyond 10 years.

I dread to think what the traffic on the island will be like with five lanes of incoming traffic pouring into the island – three lanes from the expanded Penang Bridge and another two from the proposed second bridge. As it is, Green Lane and Scotland Road are congested during peak hours. What happens when the second bridge too gets congested? We build a third bridge? And when that gets congested too, then what? Only then do we think of more sustainable solutions? How will the narrow streets of George Town ever cope until then? And considering that the oil price is now over US$130 plus per barrel and rising, how many ordinary people will be able to afford commuting on these bridges (let’s not even think of the tolls!) in say ten years?

So why not think of the sustainable solutions now – instead of deferring that to the future, when it would be too late? Shouldn’t we be laying the groundwork now to move away from private vehicle ownership? We should be shunning – not embracing – infrastructure projects that will lead to more road congestion and entrench private vehicle ownership. Instead, we need to be looking at more sustainable and cost effective public transport solutions, perhaps a cross-channel rail link integrated into a comprehensive bus, guided-bus, and street-level rail system.

It was only last week that Penang civil society groups called on the state government to come up with a transport masterplan for the whole state before plunging into irreversible mega projects that would have long term damaging repercussions for the state. So it is a huge disappointment to see the Penang state govt working closely with the BN federal government to permanently entrench private vehicle ownership through bridge infrastructure – even before we can work out a sustainable transport masterplan, as recommended by the leading civil society groups in the state. Can’t we, at least, wait a few months until a progressive transport masterplan is prepared?

One Penangite, concerned about the environment and looking at the hasty arrangements being struck, said, “This is a black day for Penang. Is this government any different from the BN government in terms of the direction it is taking us?” You can see how much the road congestion – even now – has already drained the charm of the island and sapped it of its vitality.

Actually, the new Penang state government has an enormous reservoir of political goodwill from the people following its overwhelming mandate in Penang – which it should not squander on the wrong solutions. If it was to lay its cards on the table and tell the people, this is the new direction we would like to take towards a more sustainable Penang that would be a model for other Asian cities – much like Curitiba is a model for South American cities – it would create such a buzz of excitement and enthusiam among Penangites who value their environment. Many would volunteer their services to sit down and conceptualise a green and sustainable Penang we could all be proud of. This requires a willingness to come together to plan, to engage with the most progressive urban planning and public transport experts (those without vested interests in transport infrastructure firms or projects) and to listen to public views.

George Town now is still one of the most liveable cities in Asia. But, at this rate, for how much longer? Even if we are thinking only of attracting investors, the “liveability” of a city is a major “pull” factor. Would investors – would any Malaysian, for that matter – really want to live in a polluted, congested island that is no different from any other anonymous, overcrowded city.

Penang today is at a crossroads. We can choose to go down a more sustainable path towards a green heritage city with parks, lakes, pedestrian malls, trees, shrubs, flowers, organic vegetable farms and street-level rail systems such as trams and guided buses. Or we can crawl down the congested highway of heavy, unsustainable infrastructure projects that will turn Penang into one huge parking lot shrouded by smog and silt. The choice looks easy to me.

We will live with the consequences of our choices now for generations to come – generations who might one day curse us for the choices we make now. So choose wisely with future generations – not just the next general election – in mind. We need long-term strategies formulated in the best interests of the people of Penang – not politically expedient short-term solutions.

Zaid Ibrahim to address media freedom activists

Be there or be square!On Sunday, 1 June, journalists and concerned citizens are planning to taking a symbolic Walk at Dataran Merdeka to promote the cause of media freedom.

The organisers stress that it is not a public gathering but a walk.

They expect Zaid Ibrahim to deliver a keynote address. According to the organisers, Zaid has made two requests – that journalists turn up in large numbers and that this programme calls for ethics and accountability as much as it calls for freedom.

The event is being organised by Benar and the Centre for Independent Journalism. It should be interesting!

For more info, click here.

Penang Turf Club members sue committee over sale of land

Two Penang Turf Club members, Tan Sri Tan Kok Ping and Dato’ Lee Ah Hoe, on behalf of the other members, are suing the Club’s 12-person committee for substantial damages over various issues pertaining to the sale of the Batu Gantong land.

The civil suit summons comes up to over 30 pages so I will spare you the detailed grievances.

Basically, they are arguing that the three agreements signed with Abad Naluri were not in the best interests of the Club and its members.

The three agreements are the:

  1. Preliminary Agreement dated 21 March 2003;
  2. Restructured Agreement dated 12 May 2004;
  3. Supplemental Agreement dated 1 April 2008.

In particular, they argue that the first two agreements had already lapsed and the Committee should not have entered into the Supplemental Agreement to try and revive the earlier agreements – especially when the value of the land had soared to RM2 billion following rezoning (compared to the agreed price of RM488 million).

They argue that the Committee had earlier failed to require Abad Naluri to pay a 10 per cent deposit as is the common practice in Malaysia. And they point out that the Preliminary Agreement was aimed at allowing Abad Naluri to proceed with the sale of the Batu Gantong Land even though the firm was not in any position to perform its obligations.

They contend that at the time the Supplemental Agreement was signed, the Committee should have known that Abad Naluri had not yet entered into any Sale and Purchase Agreement with the PDC for the purchase of the Batu Kawan land and therefore could not complete their part of the deal.

They point out that no diligent care was taken in ascertaining the exact nature, location, valuation and the precise details of the alienation of the Batu Kawan land.

The crux of their contention is that the Committee entered into various agreements that were “designed and calculated to benefit Abad Naluri in a phenomenal profit”. It was “a scheme put into place by the Committee Defendants in total disregard of the interest of the Plaintiff and the other members of the PTC”.

Update: The defendants named are Turf Club committee members Ong Eng Khuan, Robert Chan Woot Khoon, Dr Henry Ooi Kwee Lim, Oon Chong Kie, John Alexander Rodgers, Seow Chin, Tan Phaik Guan, Teh Choon Beng, and Ch’ng Chin Ghee as well as club consultant Muhammed Rizal Abdullah, club financial controller Tan Hock Lim and club assistant general manager and secretary Leow Khin Ming.

They are being sued for “damages equivalent to the difference between the value of the Batu Gantong Land as on the date of the Extraordinary General Meeting of 25 November 2002 and as on the date of execution of the Supplemental Agreement on 1 April 2008” . That works out to some RM1.5 billion plus other damages.

Alternatively, they are being sued for aggravated and exemplary damages, interest, costs and other reliefs.

Singapore gets the Island; Malaysia on the Rocks

Well, there you have it. The ICJ has declared that the jurisdiction of Pedra Branca falls to Singapore by a 12-4 majority.

The other territory – Middle Rocks – falls to Malaysia by a 15-1 majority.

A glum-looking RTM presentator says Malaysia has “kehilangan kedaulatan over Pulau Batu Puteh” – and then goes on to commend the Malaysian legal team for its efforts.

Making the best of the situation, Rais Yatim says it is a “win-win outcome”. He adds that the fate of South Ledge is still to be determined based on various technical aspects.

Perhaps now we can focus on eradicating injustices and poverty within Malaysia?

Penang Turf Club member to move for EGM to reclassify land back to “recreational” status

turf club

In a surprise development, a prominent Penang Turf Club member, Tan Sri Tan Kok Ping, said he will, together with a group of members, “requisite for for an EGM to be convened as soon as possible to pass a resolution mandating the Turf Club committee to take immediate steps to submit application to the authorities to reclassify the racecourse back to its original open space for sports and recreational land use”.

This is to ensure once and for all that the racecourse shall forever be preserved as a green lung for the Penang people, he said in a press statement today.

If his call is heeded, it could present a way out of the Penang state government’s current predicament. Chief Minister Lim Guan Eng had indicated that the state government was concerned that if it initiated a move to reclassify the land back to recreational status, it could expose the state to claims of compensation.

Tan said he had been personally against the decision to sell the Batu Gantong land and build a new racecourse in Batu Kawan. He said he voted against the move during an EGM in 2002.

He also disagreed with a recent proposal, mooted by some members, for the Turf Club to consider selling the land to members and subdividing it into bungalow lots for members to profit from.

“I strongly believe that the racecourse be preserved as open space or green lung,” he stressed, adding that there should not be any form of commercial development for monetary gain to any group.

If one traces the history of the racecourse, the 260 acres of land was acceded to PTC by the Straits Settlement Government for a “nominal sum” in 1935 for recreational use as a racecourse, he pointed out.

“Since it was intended for recreational purposes from the beginning, PTC should safeguard and honour the trust bestowed upon the club at all times.”

The club cannot simply sell the land for commercial activity or financial gain, he said.

He questioned how the club could allow the land to be turned over for a mega project for the benefit of “a small group of politically connected individuals to rake in billions of ringgit in profit without considering the massive social, cultural and physical impact affecting the lives of Penang people”.

He said it did not make commercial sense to throw away the existing buildings and facilities that cost nearly RM50 million to acquire over the years and to give up the club’s “first grade” land in the heart of the city in exchange for 300 acres of 60-year leasehold land in Batu Kawan.

“The Batu Gantong racecourse is a well-known landmark in Penang and it is a real shame to destroy the iconic heritage, particularly as the Government is trying to get the UN to designate George Town a heritage or historic city,” said Tan. He noted that other well-known racecourses in the world, including the HK Jockey Club, are located within city limits.

He said if the Turf Club wanted to raise funds to upgrade its facilities and racetrack, it could expand its membership from the current 580 to generate additional funds through new membership entrance fees.

Tan had stood for election to the Committee in 1992 but was not successful. He said he was no longer interested in running for the presidency or for a committee position.

Instead, he now prefers to focus on serving the Chinese business community through the Penang Chinese Chamber of Commerce and “closer to my heart, community service through education in Han Chiang High School, Han Chiang College and Han Chiang Primary School in Penang”.

Tan is the current chairman of the Board of Governors of Penang Han Chiang Associated Chinese Schools Association, a non-profit organisation. The Han Chiang school authorities allowed the DAP to hold a mammoth 60,000-strong rally a couple of days before the 8 March general election – a move which helped catapult the party to power in Penang.

Critics of the PGCC deal have urged the state government to investigate the background to the shady deal, in particular to discover who was really responsible for pushing for the relocation of the racecourse to the mainland and and to find out how over 1,000 acres of Batu Kawan land was allotted to Abad Naluri Sdn Bhd.

Tan is now expected to file a court case tomorrow on issues related to the sale of the Turf Club land.

Mokhzani follows Dad out of Umno: Mahathir’s multi-prong strategy

So Harakahdaily reports that Mokhzani is following his Dad out of Umno. He reportedly made the announcement this morning.

The shrewd politician that he is, Mahathir probably has a few tricks up his sleeve. Scheming and scheming all the time…

I believe he is opting for a multi-prong strategy in his battle to unseat Abdullah and put in place a crony who would protect his interests before Anwar and his Pakatan boys can take over. The strategy would work at various levels.

From outside: By leaving Umno, Mahathir will be freer to step up his attacks against the current Umno leadership.

From below: Through his son Mukhriz, Mahathir now has a Trojan Horse inside Umno. Mukhriz has already shown that he will step up the pressure from below.

From the top: Razaleigh has already thrown down the gauntlet in his bid to challenge Abdullah for the Umno presidency. Will Mahathir now openly throw his backing behind his one-time archfoe in a bid to unseat Abdullah?

From the flanks: By leaving Umno, he is also providing another option for BN members thinking of defecting. They could now become Independent MPs in Parliament, who will be “kingmakers” in the sense that their numbers could be crucial in deciding who is going to form a new government. They would then be in a position to demand key positions in a new administration, whether it is BN or Pakatan.

Play up racial sentiments: Gone is all his rhetoric about Bangsa Malaysia. Now he is actively courting Malay support by manipulating base, primordial communal sentiments as he did in Johor a few days ago. He openly talked about Ketuanan Melayu and about the Malays losing their rights – pointing to Singapore and Hindraf as bogeymen!

It is no contradiction. Mahathir will do or say anything as long as it serves his own personal interests, as Wong Kok Keong writes in Aliran.

But Mahathir underestimates the Malays these days, many of whom can see through such language. The “market” for those willing to “buy” such rhetoric is rapidly shrinking, but that is not stopping him from whipping up sentiment among the hardcore remnants.

Watch this guy’s next move…

He is clearly petrified that Anwar will take over and open the books on the Mahathir years. The “Lingam Tape” Royal Commission of Inquiry recommendations jolted him and convinced him that he had to take decisive action now to ward off future threats to his “legacy”.

For example, look what happened to Malaysia Airlines in the 1990s. I was just talking to a former senior finance officer in Malaysia Airlines. He told me that in the mid-1990s, just a couple of years after Tajudin Ramli had taken over the helm from Dato Kamaruddin, who was seen as incorruptible, Malaysia Airlines had RM1.3 billion in cash reserves and they had no problem securing billions in loans, if necessary.

But within a few years, Malaysia Airlines was struggling even to pay staff salaries.

Where did all that money go?

If that wasn’t bad enough, the government bought back MAS shares from Tajudin at RM8 when the market value was around RM3.60. Where is Tajudin today? And where has Daim gone? How did Mahathir allow this to happen under his administration?

In Mahathir’s case, parting is such sweet sorrow… and rather protracted too! Here are the different stages of his farewell after 22 years in power:

2002 – Announces shock decision to quit

2003 – Steps down as PM

2007 – Fails to get elected as a delegate to Umno general assembly

2008 – Quits Umno. Now what?

This is a piece I wrote for Asia Times:

Fake farewell for Malaysia’s Mahathir

By Anil Netto

PENANG – Former premier Mahathir Mohamad’s decision to quit the ruling United Malays Nasional Organization (UMNO) on Monday represents his strongest political protest yet against his hand-picked successor Prime Minister Abdullah Badawi – and perhaps his biggest gamble.

His high-stakes decision came after a royal commission of inquiry last week recommended that the former prime minister and a number of his associates face probes under various laws for suspected involvement in the fixing of appointments, promotions and removal of judges, including the sacking of six top judges in 1988, which critics claim permanently undermined the judiciary’s independence.

Full article

Ku Li tells 1,000-strong crowd he is going for top post after Mahathir quits Umno

5.30pm – Ku Li has addressed a crowd of over 1,000 people at the ballroom of another hotel in Alor Star. Commenting on Dr Mahathir’s shock decision to quit, he said that the former premier had wanted to send a strong message to Umno.

Tengku Razeleigh also said he would be challenging for the top post in the party. He added that the quota system for nominations should be abolished. And he stressed that a more democratic culture is needed in Umno.

One political analyst at the scene told me he now believes that Mahathir will be backing Razaleigh in the latter’s bid for the top post.

Ironically, it was Mahathir who introduced the nomination quota system to ward off further challenges from Razaleigh after he narrowly squeezed through in the 1987 Umno election.

2.28pm – Tengku Razaleigh is expected to address a gathering in Alor Star this afternoon. It comes hot on the heels of Mahathir’s shock announcement here earlier today, in front of a crowd of around 2,000, that he is quitting Umno.

Mahathir quits Umno: What’s next – Umno Baru Baru?

So the man who established Umno Baru in 1988 quits the party he founded in a huff.

Now this comes just a few days after he and a string of his cronies were accused of involvement in the fixing of appointments of judges.

Over the last few months, Mahathir has watched from the sidelines as his house of cards, built over 22 years, came tumbling down. All that waste and corruption and cronyism and superficial nation building during his administration finally came home to roost. The last straw was probably the release of the findings of the royal commission report on the Lingam Tape.

When I sent the news to a friend that Mahathir was leaving Umno, I received the following message in response: “And form Umno Baru Baru?”

Another friend joked, in a text message: “He is joining PKR :-)”

Later he sent another message: “You know Umno is in trouble when the r__s start abandoning ship.”

The sandiwara continues – but I can only see Pakatan Rakyat growing stronger as Umno founders like the Titanic after hitting an iceberg, sinking inch by inch. The diehard band (on the Fourth Floor?) plays on but the passengers are scurrying helter skelter to abandon ship. But are there enough life-boats to go around?

Is this the beginning of the end for Umno? What will Mukhriz do now? Is Najib all alone now? Will Razaleigh make his move now? I can only imagine the factionalism deepening ahead of the party polls at the end of December.

But can we discount the Mahathir camp altogether? Surely he has a trick or two up his sleeve. Can we just expect him to remain a passive observer in the months leading to the Umno polls? His move could be aimed at heightening the sense of crisis within Umno, thereby making it easier for Abdullah Badawi’s rivals to launch a challenge for the top post. And if the rival aligned to Mahathir triumphs in the party election, would the Mahathir camp return to Umno as Mahathir himself has suggested they would once Abdullah is ousted?

It ain’t over till it’s over.

Meanwhile, what kind of impact will this have on the Sabah MPs who are already making their presence felt and making all kinds of veiled demands?

How did Abad Naluri get over 1,000 acres of Batu Kawan land?

When discussing the RM1.5 billion PGCC scandal along with the scandalous rezoning from “recreational” land to “new development”, we cannot afford to ignore what was going on in Batu Kawan, which is closely connected to the PGCC saga.

The PGCC and Batu Kawan deals reveal some highly questionable circumstances.

During a meeting between Chief Minister Lim Guan Eng and activists a couple of days ago, I suggested to the Chief Minister that the state government initiates an in-depth probe to uncover the business-political connections in the PGCC-Batu Kawan deals while thoroughly examining the re-zoning of the Batu Gantung land. For there is more to these deals than meets the eye.

It is important to recall that Abad Naluri did not actually own the Batu Kawan site in 2002 when it submitted its tender to the Penang Turf Club. After all, the principal or master agreement for the acquisition of the Batu Kawan land from the PDC was only entered into in 2004.

Now let’s look at this revealing chronology of events – including the changes in the political leadership in Putrajaya during the crucial 2002-2004 period:

2002

May 9 – Abad Naluri submits tender for Penang Turf Club’s relocation and sale of Batu Gantung land. The tender letter, signed by a politically well connected individual in the firm then, claims that Abad Naluri would build a new race-course for the Penang Turf Club at a 250-acre site at Batu Kawan, which it says has already been “approved” by the PDC. Who exactly signed the “approval letter”?

June – Mahathir annouces shock decision to quit. Umno issues statement confirming that Mahathir will be replaced by his deputy Abdullah Badawi towards the end of 2003.

Nov 25 – Turf Club EGM approves sale of Turf Club land in Batu Gantung and acquisition of Batu Kawan site.

2003

March 21 – Preliminary agreement said to have been entered into between the Turf Club and Abad Naluri. Under this agreement, Abad Naluri pays advances totalling RM10 million, presumably as “compensation” to Turf Club members.

Nov 1 – Abdullah Badawi formally takes over as PM from Mahathir.

2004

Jan 16 – Penang Development Corporation enters into a ‘master agreement’ to sell about eight parcels of land on the mainland in Batu Kawan, totalling over 1,000 acres, to one very “fortunate” company, Abad Naluri. One of these parcels, measuring 300 acres, is for the new racecourse site. The purchase consideration for this parcel is later said to be RM46 million.

On what basis was 1,000 acres of potential prime land allotted to one firm?

Mar 21 – Abdullah Badawi cements position as PM after leading BN to landslide victory in general election.

May 12 – Agreement entered into between Turf Club and Abad Naluri for the sale of the Turf Club land in Batu Gantung on the island at a low, low “recreational land” price of RM43 per sq ft. (Why would the Turf Club sell to a property developer at such a low “recreational land” price when it knows the latter is going to develop the land? Doesn’t make sense, unless…)

2005

July 5 – Layout plan for Batu Kawan race-course approved by MPSP even though terms of PDC’s actual S&P agreement with Abad Naluri not yet finalised.

2006

By Sept/Oct – Abad Naluri submits application for planning permission re PGCC on the Turf Club land.

Draft Penang Structure Plan indicates that rezoning almost a done deal – apparently and amazingly without any application from the developer.

Nov 12 – Abdullah Badawi officiates at the ground-breaking ceremony of the proposed second bridge site in Batu Kawan, which by a happy ‘coincidence’ happens to sit right next to the proposed Batu Kawan race-course site and close to Abad Naluri’s other parcels of land.

2007

June 28 – Conversion of Turf Club land from recreational land to “new development” is gazetted under the Penang Structure Plan, turning PGCC developer Abad Naluri into instant billionaire firm, after spending only RM10 million on the land!

Oct 17 – Prime Minister Abdullah launches PGCC project, flanked by then Chief Minister Koh Tsu Koon, Patrick Lim and the Abad Naluri chairman – even though acquisition of Turf Club land not yet completed and work on Batu Kawan race-course has barely begun.

Now, after all this, don’t you think that Guan Eng has strong grounds to look again at how the re-zoning of the Turf Club land to “new development” was carried out – and how over 1,000 acres of Batu Kawan land was allotted to Abad Naluri? I believe he shouldn’t worry about compensation claims from Abad Naluri as he stands on much stronger ground, considering the business-political connections behind the Turf Club-Abad Naluri-PDC deals and the highly questionable re-zoning.

Onward towards the Penang People’s Park!