Police are investigating Phang Li Koon, the person who sold a house to Penang Chief Minister Lim Guan Eng in a controversial deal, allegedly for making a false statutory declaration (SD).
"We have opened investigations on a false (statutory) declaration against Phang. We will call all witnesses, including the chief minister," inspector-general of police Khalid Abu Bakar said at a press conference in Kuala Lumpur today.
When asked when Phang and Lim would be called in, Khalid said it would be soon.
Previously, Penang Umno Youth had lodged a report against the house seller's SD which said there was nothing corrupt about the house purchase.
State Umno youth secretary Ifan Zaimi Taha, however, claimed to have evidence that Phang has business dealings with the Penang state government.
This evidence is that a company Phang has a stake in is listed in the InvestPenang website.
DAP national publicity chief Tony Pua, however, said the InvestPenang listing is simply a directory of all companies in the state and does not mean that a company does business with the state government.
Lim had bought the bungalow in George Town from Phang last year for RM2.8 million.
Critics say this is way below the actual market value for the house, suggesting that the cheap sale was in exchange for kickbacks.
Both Lim and Phang have denied any wrongdoing.
The Penang chief minister had been renting the house since 2009 before he made the purchase. -Mkini
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