Suit against sPICE a BN ploy

Two Penang councillors claim the suit filed with the High Court was a Barisan Nasional attempt to stop development.

GEORGE TOWN: Two PKR municipal councillors said a civil suit against sPICE was a Barisan Nasional attempt to stop the building of the project.

On Monday four ratepayers filed a civil suit seeking a High Court order to declare the sPICE agreement signed between the island council (MPPP) and developer Eco-Meridian Sdn Bhd (EMSB) as null and void.

Councillors Mohd Rashid Hasnon and Felix Ooi Keat Hin claimed that the civil suit would hamper Pakatan Rakyat state government’s effort to build an international class convention center.

They also claimed that the mega Subterranean Penang International Convention and Exhibition Centre (sPICE) project was important to stimulate trade growth in the state.

“If the High Court allowed the suit, it would damage the efforts to build the center.

“It’s a BN political ploy to disrupt a genuine state government development programme for the people of Penang,” they told newsmen here today.

Mohd Rashid claimed that the area residents welcomed the project because it would boost neighbourhood socio-economic growth.

He said sPICE was part of the state administration’s goal of turning George Town into an international and intelligent city.

The four plaintiffs in the suit are R Rama Krishnan, 59, Abd Manan Abd Manap, 58, K Sathiasilan, 53, and Khoo Yen Her, 37.

According to Penang BN information chief Loga Bala Mohan, Rama Krishnan and Khoo are Gerakan members, Abd Manan is Bayan Baru Umno secretary and Sathiasilan is Bayan Baru MIC chief.

No approvals from councillors?

During the tabling of MPPP 2012 Budget in City Hall last month, PKR councillor Lim Boo Chang has objected to the agreement claiming that the DAP-led state government’s bulldozing of the project had undermined the autonomy, independence, credibility, dignity and integrity of MPPP.

Lim claimed that the council was forced to go ahead with the RM300 million-project without the knowledge and approval of councillors.

He alleged the state government had ‘misused’ the Section 9(1) of the Local Government Act to issue a directive to the MPPP to rubber stamp the project.

Felix Ooi, who is the alternate chairman of MPPP development and planning committee, said both councillors were entitled to their personal views on sPICE.

He denied any lack of transparency on the part of the relevant authorities in getting through the project.

He also denied that the MPPP was forced to enter into the contract with EMSB.

He said his committee, MPPP financial and property committee, and the council tender board have all been open and competent in going through details of the project and adhering to every single rule before approving it.

He pointed out that MPPP had also carried out public displays of the project and contract details prior to signing of the contract.

“Even BN lawyers have scrutinised the contract details,” he said.

Public dialogue

He said the Chief Minister Lim Guan Eng had also held a public dialogue with constituents on the project on Feb 14 this year.

Under the contract, EMSB/Setia was allowed to build 450 low cost houses (LMS) at price of RM72,500 and above per unit on the free land and pocket all the proceeds from the sales.

The developer has also been given a leeway of 1,500 houses that can be spread out in various projects that it would undertake on Penang island and again pocket all the proceeds.

When asked on the incentives, Felix Ooi and Mohd Rashid declined comment.

The sPICE project was to transform and refurbish the 24-acre Penang International Sports Arena (PISA) site in Relau, and turn it into a public sports facility to an exclusive club for the rich in a 30-year lease.

Once built, sPICE would have an international convention centre, an aquatic centre and a posh hotel. The developer is being given a 30-year leasehold ownership.

Development charges and quit rent will be waived for the project, and MPPP will invest RM50 million in stages for the project.