Penang Gerakan questions need for huge loan to PDC

GEORGE TOWN: Penang Gerakan today asked the DAP-led state government to explain the need for the RM609-million allocation as loan to Penang Development Corporation under the 2017 state budget.
Its treasurer, Ng Fook On, said that as an investment arm of the state government, the PDC was already cash-rich after having sold its land to the private sector.
He claimed that between 2011 and 2014, the PDC had entered into agreements with at least four companies and made more than RM2.5 billion.
"For instance, in 2011, it was reported that the PDC had sold 41.23ha of Bayan Mutiara land to Ivory Properties for RM1.07 billion. In another deal, in 2014, for another mega project, the PDC also sold 190.2ha of Batu Kawan land to Eco World for RM1.02 billion.
"In 2013, 16.19ha of Batu Kawan land was reportedly sold to PE Land for RM65.34 million and, in 2014, some 99.15ha of Batu Kawan land was said to have been sold to Aspen Vision, which is 49 per cent owned by Ivory Properties," he told a press conference here.
Yesterday, Chief Minister Lim Guan Eng said the significant increase in allocation under the 2017 state budget for the Chief Minister's Office and State Secretariat was due to the loan extended to the PDC.
Lim said the state government allocated a RM609-million loan to PDC compared to the RM70 million extended this year to make Seberang Perai the driver of economic development in Penang.
According to the 2017 Penang state budget, of the total RM707.61 million allocated for the Chief Minister's Office, RM609 million was allocated as a loan to PDC and RM30 million to the Penang Water Supply Corporation.
Ng questioned why the state government gave such a big loan to the PDC while loans in previous years averaged RM5 million to RM6 million.
He said many parties have questioned the huge allocation to the Chief Minister's Office, an increase of RM546.02 million or 337% as compared to this year. — Bernama