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LGE woke up finally for not selling off Penang land and future

This is the good governance practice from a responsible government for not selling off Malaysia like UMNO goons. RM20 million is a reasonable compensation, the former BN government was responsible for this blunder.

The canceled reclamation land deal with 50% profit sharing for state government is a bad business decision.

Boustead to get RM20mil

GEORGE TOWN: Boustead Holdings Bhd will get RM20mil as compensation for scaling down the height of its proposed hotel at the Unesco World Heritage site here.

The Penang Government has agreed to pay the amount to the company in a compensation agreement reached between the two parties instead of the RM58mil initially sought by Boustead, State Local Government and Traffic Management Committee chairman Chow Kon Yeow said.

“After lengthy discussions and feedback from an independent consultant, Boustead agreed to reduce the height of the Royale Bintang Hotel to no more than 18m in accordance with the new (Unesco) guidelines.

“However, we are still negotiating the compensation payment instalments,” Chow said when replying to a question from Sim Tze Tzin (PKR–Pantai Jerejak) at the state assembly sitting yesterday.

Sim had asked about the current status of the project’s compensation negotiations.

Chow said the initial offer by the state government was to compensate Boustead by allowing the company to reclaim 40.5ha of land along the Bayan Lepas coastal area.

“Under the original proposal, the state government would be entitled to half the profits. However, after taking into account the views of the public, the land reclamation offer was cancelled,” he said.

On June 21, Boustead submitted the amended building plan to scale down construction of the hotel from 12 storeys with 300 rooms to seven storeys with 180 rooms.

Replying to Muhammad Farid Saad (BN–Pulau Betong) on a separate issue, Chow said there were 90 licensed gambling premises on the island and 27 on the mainland.

He said all gambling licences were issued by the Finance Ministry while the local councils were responsible for the licences of premises.

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