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Poser over RM13 million overpaid in land case

 | June 11, 2012

The Penang government had overpaid RM13 million to settle land case and the BN wants to know if they have recovered the sum.

GEORGE TOWN: The Penang state government overpaid RM13 million to settle a land case and questions are being asked if the money has been recovered.

The state BN political bureau chief Dr Teng Hock Nan wants Chief Minister Lim Guan Eng to explain what happened to the RM13.5 million paid out in the Tan Hack Ju land case.

On May 7, the Federal Court has decided that the state government needed only to pay RM931,785 in damages such as wasted expenses and loss of goodwill to Tan.

The apex court decision upheld a Court of Appeal decision on Jan 11 this year awarding a similar quantum to Tan.

The Appellate Court’s decision actually overturned a High Court decision in Oct 4, 2005 that awarded Tan some RM29.34 million in damages caused by loss of profits, wasted expenses and loss of goodwill with eight percent interests.

While the appeal process was pending, the state government paid RM14.09 million to Tan via the court.

Now, since the state government only needed to pay nearly a million ringgit, the state BN wants to know Lim’s administrative action to recover the ‘overpaid’ sum of nearly RM14 million.

“The state government must reveal its steps to recover the money.

“Its taxpayers’ money,” Teng told newsmen after chairing a bureau meeting at state BN office here today.

State BN psy-war bureau chief and PPP state chief Loga Bala Mohan said BN now felt vindicated given that the Apex Court decision had cleared the air over the Tan land issue, which was exploited by the state Pakatan government to gain political mileage.

The land case happened when the previous BN state executive council first alienated a land to Tan, only to reverse the decision later after learning that the land office had given it wrong information about the property status.

Tan filed a case in the High Court claiming damages after the state government returned the land to its original owner, the Hokkien Cemeteries Association and a religious organisation.


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