Chow denies double
standard in Batu Kawan
land deal
In his testimony to the High Court, Penang chief minister Chow Kon Yeow said the aborted land sale had been conducted ‘by the book’.
He said the deal followed proper procedures despite bypassing an open tender. He said there were special circumstances for awarding the land for the BKIP2 industrial park through direct negotiations.
Chow’s testimony was made in the hearing of a defamation suit he brought against prominent businessman and Chinese community elder Tan Kok Ping who allegedly called him
last year over the aborted land sale.incompetent, ignorant, and shameless
Chow said the land’s proximity to a landfill, lack of infrastructure, and high development costs justified the approach taken, challenges which he said would have deterred investors if an open tender was conducted.
Chow said under cross-examination by Tan’s lawyer, K Kirubakaran.Any investor would have to bear significant costs,
He also said the sale followed legal requirements and the state government’s principles on competency, accountability and transparency.
Challenged by Kirubakaran as to why an open tender was not conducted particularly when both national and state policy generally encourages it, Chow said there were exceptions which allowed for direct negotiations.
He said the proposed sale to Umech Construction Sdn Bhd had been handled transparently despite it not going through a tender process.
Denial of conflict of interest
Chow also denied suggestions that a conflict of interest arose when developer Sunway Group acquired a significant stake in Umech Land just before the land sale agreement was finalised.
He said the acquisition did not result in undue influence or give rise to a conflict in the decision-making process of the Penang Development Corporation. Chow is chairman of PDC.
Pressed about the lack of due diligence and independent legal representation in the Umech deal, Chow said it was the PDC management’s responsibility to ensure all legal and financial evaluations were completed before proceeding with the agreement.
He denied the deal was handled inconsistently as compared with other state projects.
Explaining why independent legal advice was sought in a project involving the construction of a hostel for the Silver Jubilee Home for the Aged in which Tan is a trustee, Chow said he had objected to the use of a lawyer who was also a trustee of the home.
Chow said PDC engaged external legal counsel when necessary, but also relied on in-house legal expertise where appropriate.
Chow is seeking general, aggravated and exemplary damages from Tan for defamation.
In his defence, Tan denied any wrongdoing, asserting that his comments were part of an effort to ensure transparency and public accountability over the project.
The trial continues before Justice Quay Chew Soon, with former Penang deputy chief minister P Ramasamy scheduled to testify tomorrow.
Chow was represented by K Simon Murali and Kok Yuen Lin while Kek Boon Wei and Lee Wen Qian also appeared for Tan.
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