BN rep corners CM with 2008 Parliament Hansard on open tenders
Lim Guan Eng had made a call to ensure all deals are made through open tenders during a debate on the MACC bill at the Dewan Rakyat in 2008.
GEORGE TOWN: A Barisan Nasional assemblyman cornered Chief Minister Lim Guan Eng (DAP-Air Putih) at the state assembly today over the Penang government’s recent “direct negotiation” policy on the sale of a prime piece of government land.
The argument was raised after the opposition bench grilled Lim on the sale of the land sold to a private hospital owned by foreigners through direct negotiations instead of an open tender.
Shah Headan Ayoob Hussain Shah (BN-Teluk Bahang) read a transcript of Lim telling Parliament in 2008 that the Malaysian Anti-Corruption Commission Act 2009 should include a clause ensuring open tenders for all government transactions.
Shah Headan interrupted Lim during his winding-up speech on the motion of thanks for the governor’s opening address and read out the excerpt in full from Parliament’s Hansard for Dec 15, 2008.
“The practice overseas, if there is no open tender, it can be considered as an offence which can be seen as ‘amalan rasuah’,” Lim had stated in his speech as Bagan MP, said Shah Headan when reading the excerpt.
In reply, Lim told the house that 99% of state government projects worth RM39 billion were made through open tenders.
He said the remaining 1% of projects were dealt directly with “game changers” such as Ikea and Intel.
Lim said these companies offered economic value to the state in the “billions” and hence exceptions were made when it came to them.
He said despite other states in Malaysia offering big multinationals like Ikea free land to open shop, they chose Penang in the end.
“I understand you are a first-term assemblyman (Shah Headan). Maybe you have never run a government before. I would like to stress that open tenders are indeed our policy.
“We make sure all deals are made via open tenders. Direct negotiations are made usually for disaster relief or strategic investments. In this case, Island Hospital, Ikea and other big multinational firms.
“This is our policy. But policies can be amended if the state executive council changes them,” Lim said.
Earlier, opposition leader Jahara Hamid (BN-Telok Ayer Tawar) had asked Lim why the Peel Avenue land sold to Island Hospital had been “fast-tracked” without much hassle.
Jahara also questioned Lim why this kind of fast-tracking was not allowed for federal-sanctioned affordable homes projects, which were in a backlog.
“Air Putih, (Lim) is your open tender policy ‘mutlak’ (absolute)?” Jahara asked Lim.
Lim then said he had never said it was absolute and the Peel Avenue land deal began in 2015.
“How is it possible to fast-track the deal? The hospital project will only take off if a hospital licence is obtained from the health ministry,” Lim said.
He added federal housing projects were not 100% affordable as many units were priced beyond “RM1.8 million”.
Hence, Lim said, they were rejected. If the federal contractors can return with a 100% affordable project, the Penang government would approve it, he added.
It was reported that Island Hospital Sdn Bhd had already put a downpayment of RM30 million for the Peel Avenue land, owned by Chief Minister Incorporated.
The remainder of the RM126 million (of the total RM156 million) owed must be made in three months after a hospital licence is acquired.
The hospital has been given two years to acquire the licence from the health ministry. If it fails to do this, it will forfeit 2% of the RM30 million given as down-payment for the land.
Island Hospital Sdn Bhd plans to build an “Island Medical City” comprising an initial 600-bed hospital. This will be increased to 1,000 beds in the future.
A hotel will also be built in the later stages. The project is also expected to provide 2,000 employment opportunities, from low-skilled jobs to medical specialists.
The gross development value of the project is projected to be between RM2 billion and RM7 billion.
Peel Avenue land sold to hospital for RM156 million, Guan Eng reveals
Peel Avenue land valued by valuation department
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