Guan Eng questions bonuses of up to six months' salary for PDC staff
GEORGE TOWN: A backbencher has called on the Penang government to explain why its financial position has deteriorated to the extent that the Consolidated Revenue Account, which stood at RM1.15 billion in 2019, had declined by nearly RM1.1 billion over the past five years, as of the end of last year.
Lim Guan Eng (DAP - Air Putih) said this suggested a financial deficit resulting from consecutive years of overspending, totalling almost RM1.1 billion.
"Could detailed figures be provided on how this money was spent? Efforts by the state government to increase revenue and reduce expenditure are certainly welcome.
"However, they must not negatively impact financial aid to the people or further burden them," he said during his speech debating the motion of thanks for Yang Dipertua Negeri Tun Ramli Ngah Talib's address at the opening of the sitting last Friday.
Lim said that one of the financial constraints was the state government's debt to the Penang Development Corporation (PDC), which exceeded RM300 million.
He said that Chief Minister Chow Kon Yeow had previously said that, as of 2023, the state government owed nothing to PDC.
"Suddenly, in less than two years, the state owes PDC hundreds of millions? Why was inaccurate information provided to the state assembly?" he asked.
Lim said that PDC had set a lower re-tender price for the 226.2ha of land at Byram/Changkat compared to the original tender. The land was sold through direct negotiation to UMECH Construction Sdn Bhd for RM646 million.
However, following public criticism, the direct sale was cancelled and replaced with an open tender. The highest bid during the open tender came in at RM818 million from a consortium led by IJM Properties Sdn Bhd, a subsidiary of a listed company.
This open tender price of RM818 million was RM172 million, or 27 per cent, higher than the direct negotiation price of RM646 million.
Lim stressed that the RM818 million was urgently needed, given the state government's current financial constraints.
"For reasons that remain unclear, this tender offer was rejected and cancelled, and the land was re-tendered. It is understood that the new re-tender price is lower than RM818 million. Is this true, and can we be assured that the sale price under the new re-tender will exceed RM818 million?"
Another controversy surrounding PDC involved the road expansion project from Jalan Perusahaan to Jalan Tok Kangar in Seberang Perai Tengah, valued at RM21.6 million.
This project, which commenced on Aug 1, 2019, was supposed to be completed by July 31, 2021. However, it has been delayed and is now expected to be completed only by the end of next year.
"What actions are being taken to ensure such delays do not happen again, including addressing cost increases, claims for compensation from the contractor, and holding the responsible PDC officers accountable?" Lim said.
He also highlighted reports of a six-month bonus being paid to PDC staff — the highest among all government agencies.
"Who received this six-month bonus? And is this fair, considering the controversies surrounding PDC?" he added,
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