Pulau Jerejak issue — Lim asks Teng to show proof on potential RM220 mil profit

GEORGE TOWN (Nov 16): Penang Chief Minister Lim Guan Eng (pictured) today asked state Gerakan chairman Teng Chang Yeow to provide proof that the DAP-led state government stood to gain RM220 million in profit if it did not cancel an agreement with Ideal Properties to develop Pulau Jerejak. 

Lim rubbished the claim by Teng saying that it was dangerous slander Bernama reported today.

"We want Teng to show proof that the joint venture agreement would have assured RM220 million in profit which was rejected by the state government, rejected by the Penang Development Corp (PDC)," he told a press conference here today.

He also slammed Teng for questioning the integrity of PDC general manager Datuk Rosli Jaafar, Bernama reported.

Yesterday, it was reported that Teng said the state government has totally lost the ownership of Pulau Jerejak after PDC sold its 49% ownership in Tropical Island Resort Sdn Bhd (TIRSB) to Ideal Properties subsidiary, Q Island Development.

The project to redevelop Pulau Jerejak will be a joint venture between Q Island Development and UDA Holdings, a government-linked company.

TIRSB is a joint-venture company between UDA Holdings Bhd and PDC with percentage equity of 51% and 49% respectively. As the owner of the Jerejak Rainforest Resort & Spa, it had appointed Bestari Hospitality Management to operate the resort since 2004.

The redevelopment plans, which have been approved by the state government, will comprise 1,200 units of residential development, a marina, four- and five-star hotels, theme park, an 11.5km round island cycling track and related infrastructure to promote tourism in the state.

The resort is said to be quite popular among local tourists and TIRSB believes Q Island Development will be able to re-brand the operations, enhance the value of the development and turn around the loss-making property.