PAS Terengganu has backed an allegation that Umno Youth deputy chief Khairy Jamaluddin and corporate figure Patrick Lim have a stranglehold on development projects in the state.

Saying that former premier Dr Mahathir Mohamad's assertion is not a new revelation, state PAS officials claimed that projects on Pulau Duyong in particular are being peddled to the rich, with little or nothing reaching local residents.

Ex-Kuala Terengganu MP Syed Azman Syed Ahmad Nawawi said: "We told the Terengganu people a year ago what is happening and we have tried to expose them."

While Khairy declined immediate comment, state exco officials flatly denied the allegations when contacted today. Lim could not be reached for comment.

At a function in Terengganu last Friday, Mahathir had resumed his attack on Prime Minister Abdullah Ahmad Badawi for allowing his son-in-law Khairy and Lim to virtually 'rule' the state.

Syed Azman further said Khairy is using his links with some exco members in Terengganu to get projects for his "cronies", including property developer Lim.

"He has his hands in this and other projects, ensuring that his proxies get the largest piece of the pie. It is an unholy coalition.

"The Terengganu people are already poor and they have been made poorer. They (Khairy and Lim) have basically taken over the whole island (Pulau Duyong) in the name of development.

"What they are doing today contradicts their promises during the 2004 election. Hundreds of millions of ringgit have been poured into projects, but the rakyat are not benefiting from this.

"Mahathir is just rehashing what has been said all along. Khairy cuts the cake of Terengganu's economic gains back in Putrajaya and passes it around to his cronies. I think Mahathir can't stomach it anymore. Abdullah has only been in power for about three years and he has already done all sorts of things."

'Tenders not called'

The Umno-led state government was also accused of handing over the Pulau Wan Man development projects to Lim without due process.

PAS Terengganu secretary Yahaya Ali claimed that Lim has been given the contract to construct a RM250 million theme park in Pulau Wan Man and a mosque costing RM200 million.

"What is shocking is that all the projects were approved without an open tender being called," alleged Yahaya.

Lim is executive chairman for Equine Capital Bhd, a residential and commercial property developer. The company has also been tasked with a RM200 million development project in Pulau Duyong.

The work included building dozens of chalets at the Heritage Bay Club last year for the Monsoon Cup, an international yacht race. To date, about 36 berths have been constructed for the marina, with 180 berths expected to be completed by year's end.

The Monsoon Cup made its debut last November as part of the world's second largest international sailing race - the Swedish Match Tour - which takes place in nine stages around the world.

The event has drawn celebrities including Hong Kong movie star Jackie Chan and Ferrari chief Jean Todt to purchase property on the island.

"They're just peddling the island to the rich," said Syed Azman.

'No unilateral decisions'

Contacted today, Khairy said he had no comments, adding, "I will speak another time".

State exco officials came to his defence, however, denying his influence over the projects.

Mohamed Awang Tera, who heads the tourism and investment portfolio, said the Pulau Duyong and Pulau Wan Man projects have been contracted to Perbadanan Iktisad Negri Terengganu. It then sub-contracts work to Terengganu-based contractors.

While Terengganu Umno secretary Rosol Wahid conceded that Lim was the prime mover in the development of Pulau Wan Man, he denied that Khairy has any say over the projects.

"Each government policy is discussed by the exco line-up beforehand. No one makes unilateral decisions for the state government," he said.

Rosol, who is charge of the state's health and Islam Hadhari portfolios, also denied that Khairy has attended the weekly exco meetings:

"He doesn't even have an office in Terengganu. He also does not receive any projects from the state government," he said.

Rosol said contracts for real estate development and the theme park in Pulau Wan Man, worth an estimated RM1 billion, were awarded to locals.

"Not one company based outside of Terengganu has received any part of the RM1 billion project in Pulau Wan Man," he added.