BUTTERWORTH: Aug 14, 2008
The state government has ordered a review of a 10-year-old deal involving industrial land in Bayan Lepas brokered during the previous state administration that resulted in the state losing RM500,000.
“The company paid a RM1mil deposit, which was 20% of the land price. When they could not pay the balance, 10% of their deposit was forfeited.
“The state should have made a profit of RM500,000 from the forfeited deposit but instead, it used the money to pay a financial institution to get back the land,” Chief Minister Lim Guan Eng told reporters after launching the DAP’s Permatang Pauh by-election operations room.
“No explanation was given. We don’t know what happened and I’ve asked for a review. Why did we lose RM500,000?” he said.
Lim had previously unveiled two cases that he claimed could have caused RM124mil in losses to the state.
Lim and former chief minister Tan Sri Dr Koh Tsu Koon are set to debate on the state's land issues on Aug 20.