Gerakan has refuted Penang Chief Minister Lim Guan Eng’s denial that the accumulated state surplus of RM574 million since DAP took over the state in 2008 was due to land sales.

The party’s secretary-general Liang Teck Meng said in a Facebook posting today that he read Lim’s denial yesterday with “disbelief”.

He noted that in recent months, Lim had disclosed in the State Assembly that state agency Penang Development Corporation had sold at least RM1.94 billion worth of land, while the state government had sold RM760 million.

“Can the Penang Chief Minister/Accountant teach me his special Maths?” asked the Simpang Renggam MP.

Land sales not reason for annual surpluses

Yesterday, Lim said Penang would have recorded RM1.074 million in accumulated surplus since 2008 if RM500 million had not been allocated for the Public Affordable Housing Fund.

The RM500 million was taken out of the RM658 million in land sales by the state government, Lim added.

He insisted that this clearly showed that land sales was not the reason for the annual surplus of the Penang government, which amounted to RM574 million since 2008.

But Lim had admitted that the sale of Bayan Mutiara state land in 2011 for RM1.07 billion was directly credited into the Penang government accounts, Liang reminded.

“As far as I know, RM760 million plus RM1.94 billion is more than the RM574 million accumulated surplus,” he added.

“In fact, just the one sale of RM1.07 billion is more than RM574 million accumulated surplus.

“So, how did Lim come to the conclusion that the sale of land did not contribute to the state surplus over the years?” Liang queried.

“Is there some special maths that the YAB CM knows that is different from the rest of the world?” he further asked.

Here’s more land sales

Liang said the above figures did not include other sales of state assets.

He noted that state assets sold off included the RM156 million sale of the state’s 49 percent stake in Tropical Island Resort Sdn Bhd, to private developer Ideal Property Development, which will redevelop the island located off Bayan Lepas.

He also reminded the state of land rights traded away for the RM6.34 billion Penang under the tunnel project or the state land rights for the RM27 billion Penang Transport Master Plan project.

“But what is clear is that based on Lim's own disclosure that the state government's annual operating spending has jumped almost three fold from RM283 million in 2008 to RM826 million in 2015, any surplus was not due to careful spending or reduction in yearly spending,” Liang said.

Liang said Lim had also disclosed that the state annual operating spending would jump further to a budgeted RM980 million in 2016 and RM1.35 billion in 2017.

This would mean a staggering 500% increase in yearly operating spending when compared to 2008, Liang said.

He urged Lim to explain in detail how the state government found the revenue to fund this three to five fold increase in state spending while still registering a RM574 million accumulated surplus.

“Was this from an increase in state assessment rates? Quit rent? Traffic fines? Please do tell,” Liang said.

BN sold more land, but gained less

In the same breath, Lim said the previous BN government had also conducted land sales on a much larger scale selling 3,661 acres compared to only 106.1 acres under the present administration.

Lim said his government brought in a higher sum of RM1.1102 billion (compared to RM1.086 billion under BN) from the sale of 106.1 acres of land due to the state’s open competitive tender system.

He cited the sale of reclaimed land in Tanjung Pinang at only RM1 per square feet, where BN sold 36 times more land and yet received less money than the present state government.

To this, Liang said “The much repeated misleading DAP propaganda that Penang BN sold more land but got less than DAP has been countered numerous times by us”.

“Please stop confusing land reclamation rights with land and please stop repeating this lie,” Liang added.