The group said that over the 2023-2025 financial years, PLB’s external auditor, Grant Thornton Malaysia PLT, drew attention to “material uncertainties that may cast significant doubt on PLB’s ability to continue as a going concern”.
“Would Penang responsibly entrust public land, public coastline, and a claimed RM1 billion obligation to a partner whose own auditor has raised going-concern red flags for three consecutive years?” ProtectKarpal chairman Dr K Ganesh asked in a statement issued by the group today.
ProtectKarpal added that from 2023 to 2025, the company posted net losses of RM18.43 million, RM17.12 million, and RM17.51 million respectively.
“In all three years, PLB’s continuation as a going concern was stated to depend on factors such as the successful disposal of assets, completion of ongoing construction and property development projects, and continued financial support from bankers.
“This is not an allegation of insolvency or wrongdoing. It is a demand for responsible government. A going-concern warning is a financial risk indicator. When that signal appears repeatedly for three years in a listed company’s audited reports, no responsible state government should treat it as a minor technical note,” it said.
Penang exco H’ng Mooi Lye previously said the Jelutong landfill rehabilitation project had not been scrapped despite the rejection of PLB’s environmental impact assessment (EIA) report, and that the state government considered the project important because the old landfill had long-standing safety and pollution problems.
He said the report needed to be revised to address the technical comments raised by the environment department, and that any extension for the project would require the approval of the state executive council.
ProtectKarpal took issue with H’ng’s assertion that the EIA rejection was not final, and questioned the state’s continuation of the joint development agreement (JDA) between the state government, Penang Development Corporation (PDC), and PLB.
“If landfill rehabilitation is truly urgent, why has the state kept extending a JDA that has failed for years to satisfy basic EIA safeguards, instead of separating immediate landfill safety works from reclamation-driven development?” it asked.
ProtectKarpal also highlighted Penang’s recent experience with the Pulau Burung landfill, after the state government terminated the services of PLB subsidiary PLB Terang Sdn Bhd following the discovery of compliance breaches and delays in the project.
The state government later entered into a settlement under which RM35 million would be paid for the transfer of rights and ownership of facilities to the Seberang Perai and Penang island city councils.
“Penangites should not be asked to accept another landfill-related risk without full disclosure.
“If one landfill concession involving a PLB-linked company already required termination, mediation, and a RM35 million deal, the state must explain why it should now extend another PLB-linked public land and landfill rehabilitation deal, especially after repeated EIA failures and repeated extensions,” it said.
The group said PLB’s latest extension request is expected to be considered by the state executive council on May 20.
“The state government cannot treat this as a routine paperwork matter. PDC is a state statutory body. The project involves public land, a public coastline, and long-term environmental risk. Being developer-funded does not mean the project is free from public risk,” it said.