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sPICE is another BN project under PR

Anil Netto published a detailed transcript on grilling session against MPPP chairman and state exco in a press conference.

Lim Guan Eng is again hiding behind his own subordinates when it comes to grilling session.

All right-minded people will shake their heads in disbelief after reading through the transcript. The whole tender process is scandalous with no business feasibility study by a qualified party.

Pico and Taman Kasturi may be RM2 companies set up by the same developer or associated parties to make up three bidders.

PR is slightly better than BN on its “openness” to be grilled unlike BN who is running a snake oil black box tender for its cronies.

If LGE wants to be different than BN, it’s better for him to re-visit LKY for a lecture on how to run a transparent and clean government.

In short, sPICE is another BN project under PR.

In a simple mathematic formula, PR = BN.

Political Party >>>

There is no government more stupid than Penang PR government..why?

The DAP exco claimed state government gains RM200 million asset from the sPICE project.

I figure out how they came out such a silly argument, SP Setia invests RM250 million for sPICE and MPPP gives RM50 million free money. According to the “smartest” DAP politician, net asset gain for the state government is RM200 million. (250 minus 50 million).

By this DAP logic, all assets invested in Penang are owned by the state government although the profits earned never reach the MPPP and state government.

How on earth you call something as your asset if you are not the shareholder?

In reality, the state government only receive an old exhibition mall after 30 year later. By the normal accounting standard, the value of the building is ZERO. It’s a liability, not asset for state government!

Do you want this kind of DAP politicians to run your government?

Basically, Penangites (and other Malaysians from other states) have no choice because PR politicians are slightly less stupid than BN politicians.

Report lodged with MACC on ‘lopsided’ sPICE deal

GEORGE TOWN: Penang Barisan Nasional has lodged a report with the Malaysian Anti-Corruption Commission (MACC) alleging irregularities in the proposed RM300mil subterranean Penang International Convention and Exhibition (sPICE) Centre deal.

State Barisan Youth chief Oh Tong Keong said MACC should conduct a detailed probe as there were allegations of abuse of power and embezzlement in relation to the deal.

He said the agreement between the Penang Municipal Council and the developer Eco Meridian Sdn Bhd was lopsided and favoured the company instead of the people.

Continue reading >> There is no government more stupid than Penang PR government. Why?

Corruption & Cronyism >>>

What went wrong in sPICE under Penang PR government?

Corruption, Arrogance, Talking.

There are two areas we have to examine, business ROI (return on investment) and legal implication.

Business ROI for sPICE Exhibition Hall is viable?

Hong Kong tycoon Superman Li Ka Shing invested more than USD 1 billion in Singapore Suntec convention center without getting a single penny free money from the Singapore government.

How on earth he can make money from the Suntec?

For exhibition hall operator, the sources of income are more than exhibition hall rental fees.

- Be an expo organizer
- Be a hotel provider (SP Setia has do so)
- Be a sport event organizer
- Rent out office space
- Rent out retail space

With the right business strategy and clean and efficient government, Suntec Convention Center occupation rate is almost 100% all year round.

With all income sources explored, a smart investor will still able to achieve ROI payback for sPICE in seven to ten years, a normal period for such MICE project.

RM750 million in profit is derived from 1500 extra units from higher density on land utilization. But the local Penangites have to bear and suffer for more air and water pollution, congested traffic, crowded schools, stretched out public healthcare facilities, lower qualify of life, etc. in the tiny island.

The developer is projected to rake in RM750 million profit (not income) from extra 1500 units in the island is a daylight robbery business deal.

For a good governance in any world, RM50 million free money and side concessions SHOULD NOT BE GIVEN to any profit making build-operate-transfer (BOT) project under the free economy spirit.

SP Setia either takes the business risks or flies kite, I believe Superman Li or Robert Kuok will more happy to invest RM250 million in Penang MICE sector if the tender call for sPICE was advertised in Singapore, Hong Kong and elsewhere.

MPPP website daily visitor is less than 1000, merely displaying the tender call in MPPP website is not an open tender at all, Penang Chief Minister, Lim Guan Eng supposed to fly to more places to get better deal for sPICE.

Legal implication?

- Who are another two bidders? Are they really exist or an illusion under CAT?

- What the terms from other two bidders (if they exist) compared to SP Setia?

- MPPP is not under the Chief Minister office’s jurisdiction, LGE active involvement and single-handed push through the deal may be constituted as an abuse of power.

- The RM50 million, land premium waive and sPICE contract were not approved by MPPP’s full board council meeting.

- Housing density adjustment waiver was not conducted in a just and professional way. No consultation with all stalkholders before such waiver was given to developer.

BN White Elephant >>>

BN White Elephant #4 :: 156 million for BN Penghulu and Village Heads in PR controlled states

BN is abusing our rakyat money to install BN Penghulu and new village heads after they lost in five states to PR.

Penghulu and new village heads used to be appointed by state government, and with the Federal Village Security and Development Committee (JKKP) scheme under the Federal government after 308 political tsunami, two penghulu and two new village heads are found in the suburban and rural areas in Kedah, Penang, Kelantan and Selangor.

RM 156 million annual budget allocated for the duplicated penghulu and new village head is a total waste and abuse of public funds for BN component parties.

Public fund for duplicated village heads in PR states : RM 156 million

Number of BN White Elephant Project monitored : 4

Total accumulated cost or losses: RM 7384 million.

PR White Elephant >>>

100 acres land reclamation concession for Boustead by Penang PR state government

The deal was called off, this project is removed from the PR white elephant list!

The Edge Financial Daily had reported yesterday that Boustead would be allowed to reclaim an area along the coast, south of the Penang Bridge “very much less” than 100 acres between the existing Penang Bridge and the Penang Second Crossing (P2X) in Batu Maung. The reclamation will be carried out south of Bayan Mutiara which the state government recently tendered out to be developed.

The 100 acres land reclamation concession by PR state government is to compensate Boustead for downsizing its 12-floor hotel to 5-floor after the former BN Penang government approved the project without considering the building height limit set by Unesco and MPPP.

Why I condemn LGE again, didn’t I know the hotel plan was approved by Koh’s BN government? Did I have a personal grudge with him?

Read my analysis first before you jumping up an down like a DAP wild monkey.

LGE should fight the case in the court first and argued that MPPP canceled Bostead Royale Bintang hotel is to safeguard Georgetown world heritage status and national interests.

Signing off hotel plan by previous BN government could be a technical error for overlooked the world heritage guidelines.

If state government loses the case, then compensate Boustead at an amount determined by the court. LGE is selling off reclaimed land rights without a fight.

This is his typical excuse for another PR project. I will still salute LGE even he loses the case, but not without a fight in the court.

Downsizing to 5 floors compensation will not cost the state government another 100 acres of prime land.

RM 75 million is a reasonable amount if we let the court to decide the compensation. Court may decide a smaller amount if our national interest is considered in the judgment.

Why I am whining again?

The same size of Bayan Mutiata reclaimed land in Pantai Jerjak was sold to Ivory Land for RM 1 billion by PDC.

Assuming 100 acres (new data is awaiting to be released by Penang state government) land reclamation concession for Boustead is a fire sale under the name of compensation for its hotel downsizing plan.

In other word, Penang PR state government and Penangites may losing RM940 million due to this land reclamation concession!

More shocking revelation is Boustead only asked for RM50-60 million compensation, but LGE is so generous to handover this land reclamation concession to them with a potential market value of RM 1 billion and more.

I hope BN opposition files a lawsuit against PR state government if this deal is sealed regardless the huge losses for the rakyat.

This is my estimation based on the best assumptions on how much is reasonable compensation for Boustead in case state government loses the case in court.

Assumptions:

- 1 floor got 27 rooms, and 7 floors have total of  189 rooms.

- Penang hotel average occupation rate is 80%.

- Profit margin per hotel room is 30%.

- Average room rate is RM500

With a quick computation,

- 1 room earning per year = 1 X  RM500 X 30% X 292 = RM 43,800

- 189 room total earning per year = 8.28 million

Total earning for 15-year = 124 million.

After minus 40% corporate income tax, the net profit is 74.4 million.