No agreement guaranteeing RM220m profit on a tourism project at Pulau Jerejak

GEORGE TOWN: There was no agreement guaranteeing a RM220 million profit on a tourism project at Pulau Jerejak, said Penang Development Corporation (PDC) general manager Datuk Rosli Jaafar.
He added the matter was not true and the state development agency had never received such an offer.
"There is no offer (of a) profit guarantee of RM220 million for PDC as reported," he said in a press conference today with Chief Minister Lim Guan Eng.
The matter was alleged by Penang Barisan Nasional chairman Teng Chang Yeow who reportedly was quoting "reliable" PDC sources that the agreement was inked in 2013.
Pulau Jerjak, an island off the Penang Island coast, is under scrutiny after PDC sold its 49% stake in Tropical Island Resort Bhd (TIRSB) to Q Islands Development Sdn Bhd (QID) for RM156 million.
In a Nov 8, 2016, Bursa statement, UDA Holdings Bhd confirmed undertaking a joint venture with QID, a subsidiary of Ideal Property Group, to redevelop the Jerejak Rainforest Resort & Spa and 80 acres (32ha) there.
TIRSB was a 1997 joint venture between PDC and UDA where PDC had injected RM15.44million for a 49% stake while UDA contributed RM16.07million for a 51% stake.
TIRSB in 2001 was awarded 80 acres of leasehold land in the island for 60 years for RM12.95million but was experiencing losses even then.
Lim called on Teng to show proof of the matter.