Land sale issue: Penang Development Corporation amends offer letters

• "To prevent the same thing from happening again, the PDC has immediately amended all offer letters by placing a clause related to the change of company shares before signing the agreement."

GEORGE TOWN (Nov 20): The Penang Development Corporation (PDC) has made immediate amendments to all offer letters to include a clause on changes in company shares, before the signing of an agreement.

Chief Minister Chow Kon Yeow said this was to ensure that the land sale issue involving PDC land in Byram, Kawasan Perindustrian 2 Batu Kawan (BKIP2), Batu Kawan, near here, will not recur.

"The change of shares by Umech Land Sdn Bhd (Umech) happened before the signing of the agreement was done without prior notification to the PDC. Therefore, to prevent the same thing from happening again, the PDC has immediately amended all offer letters by placing a clause related to the change of company shares before signing the agreement," he said at the state legislative assembly on Monday.

Chow was replying to a question from Lee Khai Loon (PKR-Machang Bubuk).

Various parties, including the Penang Chinese Chamber of Commerce (PCCC), had raised questions about the selling price of the 226.2 hectares of land in Byram.

Chow, who is also PDC chairman, added that there were no weaknesses or mistakes made in the sale of the land to UMECH.

He said the sale was conducted through direct negotiations following promotional efforts by PDC at the Dubai Expo 2020, from Jan 16 to 23 last year, and UMECH was the only company that showed serious interest in doing business in Penang.

(Read also: PDC management instructed to conduct study on land sale, development)

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