Penang scandal bigger than 1MDB

(The Star) – Chief Minister Lim Guan Eng has denied that the state government sold land and assets worth RM37 bil since 2008.

“I do not know where he (Datuk Seri Abdul Rahman Dahlan) got the figure from. If we sold assets worth that much, we must have RM37bil in our accounts.

“We do not have RM37bil in our accounts,” Lim told a press conference in Komtar Wednesday.

Abdul Rahman, who is Barisan Nasional Stategic Communications head, had said he would release details of land assets amounting to RM37 bil that were sold by the state government since 2008.

Lim said the RM1.2 bil allocation by the Federal Government to expand Mengkuang Dam was not channelled to the state government.

“The money was channelled to their own ministry, the Energy, Green Technology and Water Ministry, to carry out the project.

“How are we to pay back money we did not even take,” he said adding there was no debt involving the RM1.2 bil as it went to the ministry.

On Aug 8, Abdul Rahman said the Penang government did not cancel the 2011 water restructuring agreement because it could cause state debts to balloon to RM1.89 bil.

He said Lim did not take into account that the Federal Government also gave the state a RM1.2 bil grant to expand the Mengkuang Dam as part of the 2011 water restructuring agreement.

He pointed out that if the water restructuring agreement was cancelled, Penang would have to reimburse Putrajaya the RM1.2 bil grant.