The Penang state government has been urged to reveal if a private company has been given the green light to build a luxury hotel on Peel Avenue.
Penang Gerakan acting youth chief Jason Loo claimed that a private firm got approval to build a 40-storey luxury hotel on the state-owned land, which came into the limelight earlier this year when it was reportedly sold to the Island Hospital Group without an open tender.
Chief Minister Lim Guan Eng had justified the sale, saying the Peel Avenue investment was akin to "foreign direct investment".
Loo claimed today that people were in the dark over the development project on the plot of land.
He presented a set of questions to the state government, to be answered within 24 hours, failing which he would "expose more details".
"Is it true that a 40-storey luxurious hotel would be built on a 6.34-acre plot of land? If it is true, what is the purpose of the development?
"If it is true, which company was awarded the project and was the 40-storey hotel approved by CMI?
"Were the transactions conducted via an open tender system and why did the state government put the people in the dark about the project?" Loo asked.
"Why didn't the state government carry out a public consultation, especially with residents within the vicinity of the project?".
The hospital project is situated on a 6.4-acre land that has been leased for a long-term period (99 years) for RM156 million. There is another plot adjacent to this land, which is owned by the hospital.
Malaysiakini is contacting the state government for a response - Mkini
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