THE Penang government has clarified recent media reports regarding the Penang Development Corporation (PDC) requesting a RM400 million fund transfer, stating that the amount is part of the proceeds from a land transaction involving the Bayan Mutiara development project in 2011.
Chief Minister and PDC chairman, Chow Kon Yeow, explained that the transaction, valued at RM1.07 billion, had been deposited into the state government’s revenue account between 2011 and 2018. However, he emphasised that the proceeds from this project must be channelled back to PDC to support the implementation of the state’s Affordable Housing Scheme (AHS).
“The state government has already allocated a portion of these funds to PDC, which has enabled the execution of six AHS projects.
“These include Bandar Cassia Phase 1 in Batu Kawan; Teluk Kumbar in Bayan Lepas; Kampung Jawa in Butterworth; Pintasan Cecil in George Town; Mak Mandin in Seberang Perai; and Bandar Cassia Phase 4 in Batu Kawan,” he stated.
Following a recent review by the state government and PDC, it was found that a portion of the proceeds has yet to be transferred to PDC.
“As Chief Minister and chairman of PDC, I am committed to coordinating and resolving this fund transfer issue.
“After discussions on Dec 17, 2024, PDC is now preparing a paper for the state executive council (MMK) meeting. This will be presented to the state authority soon, and the final transfer amount will be determined based on mutual agreement between the state government and PDC,” he added.
He further noted that the final financial arrangement would be aligned with the purchase and development agreement (PDA) signed in 2011.
The Penang government and PDC will finalise the management of the funds in a manner that complies with the agreement’s terms.
“Further details will be provided once the MMK reaches a decision,” the Chief Minister concluded.
Story by Christopher Tan
Pix by Ahmad Adil Muhamad
Video by Darwina Mohd Daud