KUALA LUMPUR, May 19 — The Penang government today denied that it received RM3 million from developer Klassik Tropika Development Sdn Bhd, amid allegations that the funds were deposited into the non-existent State Heritage Fund (SHF).
Hashimah Mohamed Hashim, who heads the state’s budget division under the finance department, admitted that there was a sum of RM3 million donated to the state in 2011, but it was given by Mah Sing Group Bhd — the parent company of Klassik Tropika.
“The RM3 million contribution was made out to the Penang State Cultural Council so it would be granted tax relief under Section 44(6) of the Income Tax Act 1967,” she said in a statement today.
“The contribution is still in the account of the Penang State Cultural Council, where state financial officer Datuk Mokhtar Mohd Jait is the controlling officer,” she added.
Recently, a local NGO called Citizens Awareness Chant Group called into question the RM3 million contribution to the state government, raising concerns that it could have been inducement for the approval of the demolition of a colonial-era mansion along Lebuhraya Pykett five years ago.
Penang Barisan Nasional chairman Teng Chang Yeow later raised the issue in the state assembly, demanding that the Pakatan Rakyat-led state government explain what was the purpose of the contribution if the SHF did not exist.
Teng claimed that the money was instead payment by the developer for tearing down the 19th century mansion to make way for a condominium complex.
