PDC didn’t have direct dealings with pyramid scheme firm, says Chow

 

Chief minister Chow Kon Yeow said Penang Development Corporation’s involvement in the Bayan Mutiara land sale followed standard procedures. (Johnshen Lee pic)

GEORGE TOWN: 

Penang chief minister Chow Kon Yeow has rubbished claims that the Penang Development Corporation (PDC) had dealings with the now-defunct pyramid scheme firm, MBI International.

Chow said PDC had no direct dealings with MBI, whose founder Tedy Teow is facing fraud charges in China, and that the state agency’s involvement in the Bayan Mutiara land sale followed standard procedures.

“I have read reports that Bukit Aman is investigating a company named MBI, and there was mention of Bayan Mutiara.

“My office and PDC can only respond on matters related to Bayan Mutiara because anything else is under the jurisdiction of the police,” he told reporters.

The 102.6-acre Bayan Mutiara state land was sold via open tender to Ivory Properties Group Bhd for RM1.07 billion in 2011. The company completed the payment in 2018.

However, after Ivory Properties and its partner Tropicana Corp Bhd pulled out in 2018, ownership of the land was transferred to Hemat Tuah Sdn Bhd.

The Penang government approved the ownership transfer in 2019 by signing new agreements. These agreements allowed Hemat Tuah to take full control of the project.

“There was a change in equity, and PDC had to approve it as per our agreement terms. That is why we signed the novation agreement. So now, Mutiara Metropolis Sdn Bhd is the entity implementing the project,” the chief minister said.

Chow said PDC operated under strict rules, ensuring that companies buying state land actually developed it instead of holding it for speculation.

“We don’t allow land banking. If a company doesn’t start work within the agreed time, we can buy it back at the original price. Even if ownership changes decades later, they still need PDC’s approval,” he added.

The Edge had reported that Hemat Tuah’s major shareholders included Teow Wooi Pin, Tedy’s brother, who held a 45% stake in the company.

Another shareholder, Tan Kim Hee, said to be Teow’s brother-in-law, owns a 15% share.

Pressed on whether PDC had any past dealings with MBI, Chow reiterated that it did not.

“PDC has no connection with MBI and I’ve already stated what I know of the matter here,” he said.

The Edge also reported that a police crackdown on MBI’s money trail saw several corporate figures in Kuala Lumpur and Penang being questioned, including lawyers who handled key transactions related to Bayan Mutiara. - FMT