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Guan Eng now takes PDC to task over alleged ‘inappropriate deals’
FORMER Penang Chief Minister Lim Guan Eng has trained its sights on the Penang Development Corporation (PDC) over alleged inappropriate deals, which have put two development projects in limbo.
After questioning PDC's handling of the proposed expansionary Batu Kawan Industrial Park II project, where the return for proposal (RFP) by the Aspen/IJM consortium was rejected, Lim is now urging PDC to sue for the payment of RM20 million in project management fees, which have yet to be paid by PLB Engineering Bhd since 2022.
PLB was awarded the project of rehabilitating and reclaiming the Jelutong landfill project, which is now under siege because the nearby residents are up in arms over the project due to the alleged harm it may cause to the environment.
The residents have formed an action committee called "Protect Karpal Singh Drive."
Lim, in a statement, said that PDC should not waste time but sue for the default of RM5 million in annual project management fees over four years since 2022, totalling RM 20million owed to PLB Engineering.
Penang signed a RM1 billion joint development agreement (JDA) with PLB in 2020 to rehabilitate the 34-hectare (84-acre) Jelutong Landfill Dumpsite.
However, PLB was also granted a concession to reclaim 70 acres (28 hectares) of land in front of Karpal Singh Drive; the monetary value is undetermined.
Chief Minister Chow Kon Yeow said PDC is expected to present its recommendation on the future of the RM1 billion Jelutong landfill rehabilitation and reclamation project at the next state executive council meeting.
The Department of Environment rejected the Environmental Impact Assessment or EIA report 5 times, and PLB Engineering failed to comply with the Extension of Time granted by the state government four times, said Lim.
"Instead of only making recommendations, PDC should also immediately institute legal proceedings for PLB's four-year default in paying annual project management fees of RM 5 million, totalling RM 20 million. The only RM 5 million annual payment made was in 2021, whilst PDC is owed 4 annual payments totalling RM 20 million since 2022."
PDC’s patience in waiting more than four years without taking legal action is remarkable, as legal action is normally taken against those renting PDC property if rent payment is missed after three months, he added.
"Despite these failures, a bonus of 6 months' salary was paid to some PDC staff in 2024. The Penang Chief Minister, as PDC Chairman, has not explained why no legal action was taken to recover the RM20 million in project management fees.
“Neither has the former state executive councillor for environment, Datuk Seri Phee Boon Poh, come forward, even though Phee played a major role in both the RM1 billion 84-acre rehabilitation project and the 70-acre reclamation project in front of Karpal Singh Drive," said Lim. - May 27, 2026.
