failed jerejak project

The Chief Minister of Penang exposed the failed jerejak project.

The jerejakk project was mounted by the previous BN government of Penang in 2004. It was a join venture with 51% stake by Uda Corporation, a federal agency and Penang Development Corpration.

What seem to be odd to me, even though UDA was supposed to hold 51% stake, but the investment seem to come from Penang.

Malaysia insider also carry the same news on the failed jerejak project.

It is hard to imagine the extend of the failure with getting the full picture. Was the project abondoned, for the changes in the tourist potential. Is this the case where the cash for the project was consumed and the building did not take shape, or is it the case of charging excessively for the materials and part, like the rm11,000 was charged for a normal computer in Malaysian Parliament?.

We do not know the real situation.

The story from star is given below..

By ZUHRIN AZAM AHMAD
zuhrinazam@thestar.com.my | Jan 19, 2011

‘Explain Jerejak’s RM30mil loss’

---

KUALA LUMPUR: The Public Accounts Committee (PAC) wants the Auditor-General to compile a special report on the Pulau Jerejak island resort development’s alleged losses of RM30mil.

PAC chairman Datuk Seri Azmi Khalid said the committee felt that the matter was urgent as it involved public money.

“PAC would like to know more about the project and the alleged losses but we are in the dark.

“We cannot simply probe the matter without any financial report and the Auditor-General is the best authority to provide it,” he told newsmen after chairing the PAC meeting at Parliament House here yesterday.

Auditor-General Tan Sri Ambrin Buang and senior officials from the Higher Education Ministry were present at the inquiry.

Azmi said he had spoken to Ambrin on the need for the committee to have a financial report before it could initiate any inquiry.

“I have talked about this unofficially with the Auditor-General and will decide whether to make it an official request at the committee’s meeting tomorrow.

The project was a joint-venture between the Penang Development Corporation (PDC) and UDA Holdings Berhad to develop an island resort called Tropical Island Resort (TIR) on the former penal code and leper detention island.

UDA holds the controlling 51% stake in TIR while the remaining shares are held by PDC.

Penang Chief Minister Lim Guan Eng said the state government was considering lodging a report with the Malaysian Anti-Corruption Commission on the failed project.

Lim said PDC’s RM15.42mil in TIR and the loan to TIR amounting to RM3.6mil could not be recouped. He also said TIR failed to pay RM10.6mil in land premium to the Penang Land and Mines Department.

Earlier, Azmi chaired an inquiry on the Auditor-General’s report on Politeknik Muadzam Shah in Pekan (Pahang) which took 10 years to complete and incurred a cost over-run of RM110mil. The initial cost of the project was RM219mil.

“The officials from the (Higher Education) ministry could not provide us with much information since the project started a long time ago.

“They are all new officers and did not have any idea on the project but we will continue with the enquiry,” he said.