Butterworth WAS in bad hands

Seberang Perai Council Going Broke, who is to blame ?
by Vineeth Menon
Friday, 04 April 2008

I refer to your article " Seberang Perai Council Broke" in the Star newspaper dated 3th April 2008.

As a rates payer who pays assessment to the council promptly every year, I am deeply disturbed by the current financial woes faced by the Council. It was revealed that the council had a reserve of RM229mil in 2000 but was left with only RM25.6mil as at end of 2007. It has become a public knowledge that much of the council's reserves have been utilized for the purchase of land and building of new MPSP headquarters in BANDAR PERDA.

Twin Tower MPSP building
The former YDP of MPSP, Daud Taha, in his press statement on 28/1/1999 ( Star paper 29/1/1999- Council to move to Bandar PERDA) has confirmed that the MPSP will move to Bandar Perda and will have a office building costing "multi million" range.

Sources revealed that at that time, the original proposal by Bandar Perda's developer- Aseania Development Sdn Bhd to the council was to built a twin tower for MPSP. The estimated costs for the twin tower was RM120 million excluding land cost and office fixture and fittings.
Sources also revealed that the original twin tower proposal has received the “blessing" and endorsement from the "highest authority ministerial level" for the developer to proceed and fast track the project by direct negotiation with the Penang state government. However, the proposal to built the twin tower for MPSP has been scaled down and reduced to one single block at the insistence of ex-CM of Penang.The building cost for the single office block for MPSP is about RM65 Million. The new MPSP headquarters (pic) was completed in 2005 and MPSP started moving in from Butterworth in 2006 and only officially hand over to council in late 2007 due to defective air-cond system.

If the original twin tower MPSP headquarters was being built (see the prospective photo in Aseania's website) ,The council COULD HAVE GONE BANKRUPT by now !!!!!!!!!!!!!!!
Land/building cost

The development of the revised single office block for MPSP was awarded to Aseania Development Sdn Bhd, a development company owned by UMNO politicians from Bukit Mertajam through "DIRECT NEGOTIATION". Bandar Perda is a 456 acres privatized housing project by PERDA to Aseania Development Sdn Bhd at land valued less than RM3psf in early 1990's. According to reliable sources, the land costs after taking into account the earth-filling costs of about RM2psf is less than RM5psf. MPSP acquired the land of 10 acres in early 2000's and paid more than RM30psf for the present 10 acre site.Ten times higher than the original acquired land cost.

Sources also revealed that the estimated total investment by the council to own this 5-star landmark building including the land,office furniture and fittings exceeded RM85 MILLION.
The people of Seberang Perai are frustrated whilst council heads and staff are enjoying 5-star office working environment, but the council service has not been improved significantly as expected !!

I hereby urge The Star paper to probe further on the followings :-
Was there any impropriety of council funds as the project was awarded by way of direct negotiation instead of open tender system ? Was the costings justified and fair to the rates payer at large?

People are questioning who are the main beneficiaries from the development of new MPSP headquarters . Only a few people of a company benefited from this or the majority of rates payers in Seberang Perai ?

What happen to the old council building in Butterworth? why is it still left idle ?
Who is responsible for this ? who is the culprit to blame ?? The rates payers demand an explanation! The state government must act to check and stop misuse of the council funds to not allow the council to go broke. Appointment of independent auditor is first step to identify the rots.

Need more untold info or secret about Bandar Perda ! email to pemantaupenang@gmail.com


Also read: financial report available at bursa malaysia's website–
Aseania Development Sdn Bhd is a subsidiary of Gold bridge construction & Engineering
Look for annual report 2002, 2003, 2004 – corporate structure corporate info section
Annual report 2002 (page6, 9-11) mentioned RM48 million for development of new MPSP headquarters.