Why is the Penang State Government especially lenient to KLIDC for not fulfilling the terms of the original tender award even after six years?
Today, someone dropped this document outside my office in Penang. This appears to be the offer letter to KLIDC for the controversial Taman Manggis PPR Fasa 2 land.
KLIDC's owner is Datuk Tang Yong Chew, the boss of Miss Phang Li Koon who very kind heartedly sold a supposedly bad Feng Shui house millions of ringgit below market value and at a financial loss based on her cost to YAB Chief Minister Lim Guan Eng.
The letter was dated July 2010 and KLIDC had until 5 August 2010 to accept the offer, which they did.
What is interesting about this letter were the conditions for the tender and the offer - failing which, the agreement can be terminated by the state government.
1) Obtaining the approval of the medical center license from the Ministry of Health within one year.
2) Completing and opening the medical center within 3 years
Both of the above did not seem to be complied with and coming to 6 years later, the Taman Manggis land remains a grassy field with no evidence of any work done on the land.
In fact, the medical license that KLIDC got from the MOH seems to have only been obtained on 2 Nov 2012 - which is more than 1 year beyond the initial deadline stated in the offer letter.
And worse, the medical center license had expired in Nov 2015 and the land is still bare and empty except for green grass.
By agreement, 3 years after the award date there should be a functioning medical center.
But the reality is there is nothing except for grass there.
Somehow the "competent" and "accountable" Penang state government seems to be especially lenient to KLIDC for not fulfilling the terms and do not seem to be serious in completing this supposed medical tourism project that will help in Penang's development within an acceptable time.
Or is 6 years of no progress without cancelling the contract acceptable to the DAP Penang State Government and is standard practise?
Another thing to note is that the extension of the 99 years leasehold land is supposed to start upon the signing of the "privitization agreement" but previously leaked hakmilik documents show that the hakmilik was extended and issued on April 2015 - less than 3 months before YAB Lim Guan Eng bought his bungalow (without swimming pool) at a scandalously cheap price.
Was the priviazation agreement only signed 5 years later after the tender was awarded in the year 2010?
It seems the Penang State Government is especially lenient to Datuk Tang Yong Chew's KLIDC even though the tender was awarded almost 6 years ago.
Six years ago, the Taman Manggis land was an empty and today it is still an empty land.
The Penang State government has a lot to answer.