Home Blog Page 545

Two hot potatoes in PGCC/Penang Turf Club deal

Anil Netto
-
11

It looks like we are going to hear more about the Penang Turf Club in the news.

The controversy is simply not going away.

Here are two more hot potatoes:

First hot potato: No conversion fee charged

When the status of the Penang Turf Club land was converted from open recreational to mixed development land, by right the state government should have collected a conversion fee from the developer – even if the developer had not applied for the conversion. But the conversion was nonetheless handed over on a silver platter by the previous state government for the PGCC developer’s benefit.

The state waived hundreds of millions of ringgit in one fell swoop. How much would the fee be?

Few outside the local government know for sure what the actual rate should be in this case.

From one source, I hear it should be 25 per cent of the original value.

A second source tells me that it could be RM50 per square foot. (In Green Lane, for instance, if you want to convert houses from residential to commercial, the conversion fee is apparently around RM100psf.)

Let’s do the calculations for both methods, based on purchase price of RM488 million for 260 acres (with only 180 acres that may be developed, the remainder being hill-slopes and cemetery land):

Based on 25 per cent of the value:

RM488 million x 25% = RM122 million

Based on RM50/sq ft conversion fee:

180 acres x 43,560 sq ft/acre x RM50/sq ft = RM392 million

So the conversion fee would have been in the ball park range of RM120 million to RM400 million. Either way, we are talking about hundreds of millions of ringgit of lost revenue for the state. The developer should have been charged this fee – even if it had not applied for the conversion itself.

Let’s not also forget the profit made by the developer arising from the higher market value of the land following the conversion. Based on the current market value of mixed development land of around RM250psf:

Current value (180 acres x 43,560 sq ft/acre x RM250/sq ft) – purchase price RM488 million = RM1.5 billion revaluation profit!

Less: the cost of a constructing a new racecourse RM300 million

= RM1.2 billion surplus.

Hey presto! The developer becomes an instant billionaire, thanks to the government.

So this is one good reason for the Penang government to immediately regazette the land back to recreational status and turn the whole place into a People’s Park.

Second hot potato: Prime land sold cheap to Abad Naluri (but still unpaid)

Now, Abad Naluri was supposed to build a new replacement race-course in Batu Kawan over 300 acres of land acquired from the Penang Development Corporation. This land is now prime land in Batu Kawan as it is just next to the site of the proposed second bridge for Penang (what a “coincidence”!), the ground breaking ceremony for which was held in 2006 by Prime Minister Abdullah Badawi.

And how much did Abad Naluri pay for this land?

According to one source, the purchase consideration was RM46 million for 300 acres (still not paid).

Let’s do the calculation:

RM46 million divided by 300 acres divided by 43,560 sq ft/acre = RM3.52psf!

And this probably includes the cost of earth filling by the PDC.

RM3.52 per square foot for prime land?!! What the…

It is now said to be worth 15psf, which means that Abad Naluri would have made;

Current market value (RM15/sq ft x 300 acres x 43,560 sq ft/acre) – Purchase consideration RM46 million =

unrealised revaluation surplus of RM150 million for Abad Naluri if the sale were to bes completed.

It’s time for the Penang state government to take back the Batu Kawan land and sell it at its real value or use it for the people’s benefit e.g. low-income housing.

Now, let’s look at the chronology of events:

2002

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

2003

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

No mention in Annual Reports of progress of deal since then.

2004

May 12 – Agreement entered into between Turf Club and Abad Naluri for sale of the Turf Club land in Batu Gantung.

Abad Naluri also enters into Principal Agreement with PDC for purchase of Batu Kawan land, for which it has still not paid RM46 million for 300 acres. Terms and conditions apparently still not finalised.

2005

July 5 – And yet, layout plan for Batu Kawan race course approved by MPSP.

2006

By Sept/Oct – Abad Naluri submits application for planning permission for PGCC.

Nov 12 – Abdullah Badawi officiates at the ground-breaking ceremony of the proposed second bridge in Batu Kawan, right next to new race-course site.

2007

March 28 – Earthworks approval for Batu Kawan site obtained from MPSP; earthworks said to have commenced after this – even though purchase consideration not fully paid!

June 28 – Conversion of Turf Club land from recreational land to mixed development gazetted under the Penang Structure Plan, thus turning PGCC developer into instant billionaire!

Oct 17 – Prime Minister Abdullah launches PGCC, flanked by then Chief Minister Koh Tsu Koon and Patrick Lim – even though acquisition of Turf Club land not yet been completed.

Penang civil society groups launch concerted and successful anti-PGCC Campaign, mobilising Penang public, who send 2,500 letters and 500 emails to Chief Minister Koh.

2008

Jan 14 – Koh issues directive to return the planning application to the PGCC developer, who now has to revise the plan before it can be approved.

March 8 – But it’s too late. Penang ruling coalition is shockingly trounced in the general election. Gerakan loses all state seats and Koh is dumped in Batu Kawan parliamentary seat. It’s a complete wipe-out.

March 12 – New Chief Minister Guan Eng says no approval has been given for PGCC.

Over in Batu Kawan, Abad Naluri has made hardly any progress in constructing replacement race course. Instead, cows seen grazing on the site!

April 1 – Supplementary agreement entered into between Turf Club and Abad Naluri extends the original agreement, which should have lapsed. The agreement is extended to 2011.

April 7 – Penang Turf Club holds AGM, amidst uneasiness among members over the deal.

April 10 – Abad Naluri chairman resigns.

April 14 – PTC opens documents for inspection by members, but says documents not for circulation to members; members only “free to make notes of the documents”. Some Turf Club members unhappy that allegedly material changes to the original deal not brought to their attention.

May 1 – New vultures said to be entering the picture through the back door, showing interest in Turf Club land.

May 8 – Turf Club members lodge police report.

Utter fiasco! Here’s why CCTV cameras won’t work in Penang

Anil Netto
-
9

Now this is why the Penang state government should not go ahead with its plan to install CCTV cameras in crime-prone areas. The only people to benefit will be the camera and equipment suppliers.

The UK has the most CCTV cameras – but it has been an utter fiasco as this report from This is London: reveals:

Billions spent on CCTV have failed to cut crime and led to an ‘utter fiasco’, says Scotland Yard surveillance chief

Last updated at 11:22am on 07.05.08

The billions of pounds spent covering Britain with CCTV cameras has been an “utter fiasco” and failed to slash crime, Scotland Yard’s surveillance chief has said.

Detective Chief Inspector Mick Neville said a Metropolitan Police pilot project found just three per cent of street robberies in London were solved using CCTV images.

He claimed the vast swathes of money spent on cameras had been wasted because criminals don’t fear the cameras.

But Mr Neville also castigated the police and claimed officers can’t be bothered to seek out CCTV images because it’s “hard work”.

The comments from Mr Neville, who is the head of the Visual Images, Identifications and Detections Office (Viido) at Scotland Yard, will further cast doubt on the spread of surveillance in Britain.

Britain has one per cent of the world’s population but, incredibly, 20 per cent of its CCTV cameras – the equivalent of one for every 14 people.

Last year it emerged the £200m spent on 10,000 crime-fighting cameras in London had had little effect on reducing offending.

A comparison of the number of cameras in each London borough with the proportion of crimes solved there found that police were no more likely to catch offenders in areas with hundreds of cameras than in those with hardly any.

Speaking at a security conference in London, Mr Neville claimed the use of CCTV images for court evidence had been very poor so far.

He said: “CCTV was originally seen as a preventative measure.

“Billions of pounds have been spent on kit, but no thought has gone into how the police are going to use the images and how they will be used in court.

“It’s been an utter fiasco: only three per cent of crimes were solved by CCTV.

“Why don’t people fear it? They think the cameras are not working.”…

So please don’t waste public money on CCTV cameras. Rather, get to the root causes of the rising crime rate and tackle them.

Meanwhile, hot off the oven:

Question #47 – Mei 2008

Liew Chin Tong (Bukit Bendera) asks the Minister of Housing and Local Government to state the direction and time frame to establish local council elections to start a new chapter of democracy in Malaysia.

Minister’s Response:
The Government does not plan to conduct any local council elections.

Well, we can’t wait for the BN-led Federal Government, which is so out of touch with the people’s aspirations. The Pakatan state governments must come up with a quick road map to push through local government elections.

Malaysia’s folk hero Raja Petra opts for jail to prove a point

Anil Netto
-
1

Spent the evening working with Mus on a press statement in response to the action taken against Raja Petra.

It is just three days after we marked World Press Freedom Day.

Not good. And downright depressing.

But mind you, this move could backfire. It is high stakes poker, and I guess they didn’t anticipate that Raja Petra would refuse bail. Now he is in jail and the glare of the international media will focus even more on him, the Malaysian government, the judiciary and the Altantuya trial.

Certain people are going to be shifting in their seats rather uncomfortably – or maybe having sleepless nights. They have no idea what Raja Petra is going to say in court, come October.

As Malaysiakini observes, hauling Raja Petra to court has only turned him into a legend – if he is not already one. For it was Raja Petra and his Malaysia Today website that played a not insignificant role in the fall of five states to Pakatan Rakyat.

Farewell, blogger Rustam; welcome, blogger Mustafa

Anil Netto
-
7

And so the baton is passed in the relay of life.

From one true Malaysian and leading public intellectual, Rustam, and his blog…

…. to another, as Mustafa K Anuar, the asst secretary of Aliran, kicks off his blog with his first full entry on World Press Freedom Day.

When Mus told me he was starting a blog, I remarked that he would be taking up the blogging baton that Rustam has handed over. Mus is also coordinator of Charter 2000-Aliran, a citizens’ media initiative to promote press freedom, and fellow of the Asian Public Intellectuals (API) programme.

Some of the best journalists in Malaysia today were taught by Mus and his colleagues – and they will undoubtedly be delighted to see his blog.

Rustam and Mustafa – both wonderful people with a broad, universal outlook; both involved in the media; both passionate about the cause of justice; both Aliran members – and both genuine Malaysians.

One blog goes dormant and another springs to life.

Mus says he is starting his blog because he has

“this nagging desire to know how it feels to be a monkey, a prostitute and an unemployed, among other unsavoury things!

For the uninitiated, these ‘labels’ were hurled against Malaysian bloggers by the powers-that-be especially before the 12th general election”.

Visit Mustafa’s brand new blog.

Odds and ends on World Press Freedom Day

Anil Netto
-
12

I was about to wish you Happy World Press Freedom Day, but…

…they are at it again. Harassing Raja Petra, that is, over his posting on Altantuya. What exquisite timing. Come on, give the guy a break. And give him back his laptop.

Anyway my choice for quote of the day has got to be from the man himself as reported by Malaysiakini.

Meanwhile, Raja Petra, when asked if his posting contained seditious elements, replied: “The whole website (is seditious). The whole Malaysia Today (is seditious)”.

So there! What a guy…

On another note, someone sent me this link with the message:

Lim Guan Eng spotted by Ning Baizura’s manager/agent at the airport and on a plane. Click here.

Have we have finally found a Chief Minister truly for the People?

You’ve got to give credit where credit is due. To the other CMs in Malaysia, watch and learn.

Finally, blog reader Maliku has highlighted the latest threat to Penang’s hills:

There is a piece of land on a slope just behind the leader garden condominiums in Tanjung Bungah, Penang where we saw surveying points and cleared brushes/trees during one of our runs in the hills. It is located just beside a catchment area and about 200 to 300 feet high on a little valley in the hills. Could it be earmarked for residential development? Can Ms Anil (err, I’m male!) check this out and bring it to the authorities’ attention because we need to preserve the remaining hills before Penang Island become a barren land!

Can anyone verify this? Those living around that area for instance?

Bridge near Shanghai works out cheaper per km than second Penang bridge

Anil Netto
-
21

Is the cost of the second Penang bridge way too high?

China yesterday inaugurated one of the longest sea bridges in the world – a six-lane 36km link (27km over sea) to connect Jiaxing city near Shanghai with Ningbo in the province of Zhejiang. And what is the cost? 11.8 billion yuan, which is RM5.3 billion (RM147 million per km).

In comparison, the cost of the proposed four-lane second Penang bridge, which is 24km (of which only 17km is above sea), is expected to cost at least RM4.3 billion (RM179 million per kim). It’s more than a third shorter than the bridge in China, and yet the cost is only about a fifth lower. The Edge even reported that UEM was seeking as much as RM4.8 billion for the Penang job.

So how? Something doesn’t look right. Why don’t we just expand the ferry service for a start to considerably ease congestion on the bridge while we explore a shorter rail link. Oh yeah, I forgot, that is too cheap a solution!

Still on the subject of transport, while Malaysian officials and planners can only think of multi-billion ringgit monorails and subways for our urban centres, the UK is rapidly turning to guided buses, guided trolley buses and trams as low-cost but efficient solutions to urban public transport in a string of British cities and towns. Check out this list of proposed schemes in the UK.

Again, this may be too cheap a solution for our planners’ liking… For some reason, they just love those multi-billion ringgit price tags.

Penang Turf Club: Here come the vultures

Anil Netto
-
20

As expected, barely has the dust settled from Abad Naluri’s failed attempt to get the PGCC moving than renewed interest has been shown in the Turf Club land in Batu Gantung.

The talk in the market is that a major property player involved in the building of shopping malls in KL has been showing interest in the Turf Club land. Overtures are apparently being made.

For now, the agreement between Abad Naluri and the Turf Club still stands – though some Turf Club members are said to be disputing the way it was formalised.

So any renewed interest by other players will have to come through the back door. We already know that there have been boardroom changes in Abad Naluri and Equine Capital. So what’s going to happen next?

It is time for the Penang state government to probe the entire deal. In particular, who or what really persuaded the Turf Club members to sign an agreement to give up its precious asset for a pittance (RM43 per sq feet) to a developer who was bound to profit from a substantial jump in valuation (to about RM250psf)? Something just doesn’t square up. I mean, why would you give up your prized possession for just RM43psf? Yes, it was based on recreational land value, but why would anyone want to pay RM488 million for recreational land? Unless he was confident the land would be regazetted to “mixed development”. But what gave him that confidence?

Of course, Turf Club members received compensation of RM20,000 (supposedly inconvenience allowance for travelling to the new racecourse in Batu Kawan) totalling RM10 million. But that’s chicken feed compared to what’s at stake. In any case, why would they be paid upfront, when work on the Batu Kawan race-course hasn’t even started? Unless the payment was just meant to “persuade” ordinary members to come on board and give up their prized asset.

So was there a “kingmaker” behind the scenes – or more than one – acting as the driving force for the deal?

How was the status of the Batu Gantung race-course land changed on the quiet from “recreational” land to “mixed development”?

Those of us who want to keep the Turf Club land as a precious green lung and turn it into a People’s Park had better remain alert, as the vulture(s) circle and swoop for this prized land.

Banana-leaf lunch with cartoonist extraordinaire Zunar and blogger Fazlina

Anil Netto
-
4

Zunar and Fazlina

One of the most rewarding aspects of my line of work is that I get to meet some outstanding Malaysians. Really cool people.

Like Malaysia’s most famous political cartoonist, Zunar, and his wife Fazlina, who runs the Roti Kacang Merah blog.

A couple of colleagues – Ramakrishnan of Aliran and Kris, a human rights activist – and I caught up with them for lunch at a banana-leaf restaurant in Penang.

Zunar was in town on work. He is the editor of Suara Keadilan, which has just received its publishing permit, three years after their first application.

“Instead of saying thank you, Prime Minister, my thanks would go to our readers, vendors and printers, who have been intimidated in the past,” he told me. “We have been denied a permit for three years, so his announcement is three years too late … These reforms are half reforms, too late and too little.”

Contrary to earlier impressions, the sales of the fortnightly paper remain restricted to party members, though I guess the authorities will have a tough time enforcing this ridiculous and oppressive condition.

According to Zunar, Suara Keadilan’s circulation has jumped from 30,000 before the general election to close to 100,000 presently.

We had some good laughs. Zunar, who also contributes cartoons to Malaysiakini, has this hearty laugh that almost shook the walls of the restaurant. The man obviously has a great sense of humour and he has the gift of spotting the funny side of political life. Fazlina is bubbly and chatty and clearly appreciates his wit. Such a warm and down-to-earth couple. Check out her impression of our lunch together.

They were on a trip that took them from KL, past Perak to Penang and southern Kedah. “It was a good feeling to know that our entire journey was in Pakatan Rakyat territory,” they laughed.

I told them, yeah, you didn’t have to bring your (political) “passports” along! So it’s not just Celcom territory, eh…

How times have changed.

How different will the Pakatan’s economic policies be?

Anil Netto
-
11

Everyone knows that the Pakatan is trying to promote greater accountability and transparency. In terms of its Malaysian Economic Agenda, it wants to help those in need.

But beyond that, we know little about its economic orientation. How much will it rely on the open market and how much on state intervention. What kind of mix? Anwar has said he believes in a high-growth market economy tempered with humane social policies. Capitalism with a human face, perhaps…

But then, there are all kinds of people in Pakatan – from Pas folks, whe are aiming for a welfare state to the corporate boys in PKR to the socialists like Nasir and Jeyakumar. Whose views will prevail? Or will they reach some sort of happy equilibrium?

At the end of the day, will they be beholden to Big Business in their economic orientation? Or will they promote more people-centred policies that promote social justice and sustainable development to benefit the common folk?

POLITICS-MALAYSIA: Equitable Distribution of Wealth – The Challenge
By Anil Netto

PENANG, Apr 27 (IPS) – With Malaysia’s opposition pact in the ascendancy after stunning gains in a general election last month, some are wondering how different their economic policies are likely to be if they do wrest power, as many expect them to do, eventually.

Full article

Thank God for the “mega setback” to Penang infrastructure projects

Anil Netto
-
36

Today, I just want to thank God for confounding the proponents of the mega transport projects in Penang and delaying them (just like he confounded those pushing for the PGCC project). The bridge partners are now arguing about cost apportioning and design costs – and the project hasn’t even started! Porr, on the other hand, has not even got off the ground after years of inaction while the monorail salesmen are busy trying to convince the Penang government that the overhead train is the greatest thing since the invention of the wheel.

All these multibillion projects may not be in the best interest of the state and of ordinary Penangites. Think about this:

Fact No. 1 – The oil price today is US$116 per barrel (for dated Brent Spot) – and we can expect the upward trend to continue. Can you imagine how much the petrol will cost just to go up and down the bridge in say 10 years? And let’s not even talk about the toll.

Fact No. 2 – World oil production is close to a peak and it is increasingly more difficult and more expensive to find new oil reserves. Production will not be able to keep pace with demand.

Fact No. 3 – Malaysia will become a net importer of oil within a few years and our oil reserves may not last more than a generation.

Fact No. 4 – The roads of Penang are already congested. In fact, Penang Island already has a higher traffic density than Singapore even though Singapore has about 5-6 times the population of Penang Island. How much more traffic can it absorb before it becomes a living hell?

Fact No. 5 – The ferry service today is operating at half the capacity compared to the late 1970s. The old ferry terminal on the mainland which collapsed was never rebuilt. No wonder the ferry service does not have the economies of scale that it once did. No wonder there is so much congestion on the bridge.

Fact No. 6 – Climate change and global warming are here to stay.

Fact No. 7 – More cost effective alternatives have not been considered.

With this in mind, it is amazing that our “planners” want to take us down the (tolled!) path of unsustainable transport infrastructure projects that promote private vehicle ownership and more fossil fuel consumption and which will lead to congestion, pollution and global warming.

Let’s tot up the bill for going down this unsustainable path:

Second Penang Bridge – RM4.3 billion (UEM is said to have come up with a figure of RM4.8 billion!)*
Penang Outer Ring Road – RM1.1 billion
Monorail – RM3.5 billion

Total cost: RM8.9 billion

Allowing for further cost escalations, say a total of RM10 billion at least.

* This cost is probably inflated, as one expert told me that material costs for the second bridge should not exceed a billion ringgit – RM2 billion at most. Even The Edge business weekly in its cover story this week suspects that the RM4.3 billion figure could be inflated.

With a fraction of that RM10 billion total bill, we could do wonders for public transport – and other social spending – in Penang.

What could we do with say RM3-4 billion?

  • Expand the ferry service and build more ferry terminals at different locations
  • Introduce trams
  • Build a cross-channel rail link perhaps alongside the Penang Bridge

The Penang state government’s new high-powered team for the second bridge should shift its focus to public transport for the whole state.

It is incredible that we can even think of mega transport projects when we haven’t even come up with a transport masterplan for the state that would promote public transport. We haven’t even considered the implications for traffic and the environment in the state.

Why the hurry to spend billions before thoroughly studying the situation and looking at feasibility studies? In the first place, why even borrow US$800 million from China to finance the second bridge? And where are the EIA reports?

We still have time to do some proper planning before throwing away billions – which ordinary Penangites will have to bear for years.

In the meantime, expand the ferry service. That should immediately reduce congestion on the bridge.

And then let’s consider ALL the alternatives which would include an improved bus service, trams, ferries and a cross-channel rail link. Come up with an integrated masterplan and don’t work on a piece-meal, ad hoc basis.

Penangites cannot make an informed choice if we have not considered all the various options thoroughly and listened to the views of the best public transport experts from around the world (ie those who do not have any vested interests in infrastructure projects). Why not invite public transport experts from cities with excellent public transport to tell us how they reduced their traffic nightmares at a fraction of the cost?

The good thing about promoting public transport is that it will create more long-term local jobs. Think of the construction of new ferries and ferry terminals, assembling of buses, laying of rail tracks for trams, more ferry pilots, ferry crew, tram drivers, bus drivers, admin staff, maintenance personnel…

It will lead to less stress and congestion on the roads as pedestrians and cyclists reclaim the streets. It will also be a lot more sustainable and spark more economic activity in the town centres as the experience of other cities with excellent public transport amply demonstrates.

Wouldn’t you want to live in a charming heritage city where you could walk past old shophouses along the tree-lined streets in town, use efficient public transport that won’t cost an arm and a leg, sip a drink at a road-side cafe and watch the world go by without choking from the fumes of passing vehicles? I know I would.

Do you really think those boys in Putrajaya share this vision of Penang? Do you think they care about the environmental consequences?

In a sense, we are at a crossroads. Penang is in a unique position to do something different – something sustainable, environmentally friendly and people and pedestrian friendly – which could be the talking point of the region. If we go down the wrong road, I don’t even want to think of the consequences. It will be the end of Penang as we know it.

Anyone up for a ‘Bloggers for Trams’ in Penang campaign?

1...544545546...569Page 545 of 569