GEORGE TOWN, Feb 26 ― Facing a massive compensation payout, the Penang government has appointed prominent lawyer Datuk Ambiga Sreenevasan and Universiti Malaya Law Professor Gurdial Singh Nijar to aid it in a court case on its rejection of hill development projects above 76 metres that had been approved under the previous Barisan Nasional (BN) administration.
Making the announcement today, Penang Chief Minister Lim Guan Eng said it would be the “case of the century” for planning law in Malaysia as the compensation sought after by the affected hillside landowners could cost the state billions of ringgit.
“The present Penang state government lives in daily fear and nightmare of facing huge compensation payouts due to the failures of the previous Barisan Nasional state government that can bankrupt the state,” Lim said in a news conference at his office here.
He insisted the bankruptcy threat is real, citing past development cases that had cost his administration dearly, among them the RM29.4 billion compensation payout to Tang Hak Ju and the RM20 million compensation to Boustead Holdings Bhd to reduce the height of their hotel from 12 storeys approved by the previous government to five-storeys.
Lim said Ambiga and the UM law lecturer will assist the Penang Island Municipal Council (MBPP) in court when the case by Sunway Bhd comes up for judicial review. A date has yet to be set.
The Bagan MP said the Appeals Board recently delivered a decision that the MBPP can reject special projects approved by the previous government without paying compensation.
“This gives MBPP an opportunity to overturn the special projects approvals given by the previous state government without paying financial compensation,” he said.
However, the Appeals Board’s decision can be subjected to judicial review by the High Court if Sunway Bhd and other affected landowners filed for compensation through a judicial review.
“Sunway Bhd has communicated to me of their intention to do so and may seek compensation, should the Appeals Board decision be affirmed by the High Court,” Lim said.
Ambiga and Gurdial will assist the state government legally when the judicial review is argued in the High Court, he said.
Recently, the Appeals Board chairman Datuk Yeo Yang Poh ruled that MBPP did not need to approve the development order sought by Sunway Bhd for land above 76 meters.
They were allowed development of either six units per acre or 15 units per acre by the previous state government.
The Appeals Board also stated that MBPP need not pay compensation for rejecting the special project.
Commenting on their decision to assist MBPP in the judicial review, Gurdial said they will look at a variety of angles of the case to ensure no compensation is payable for rejecting the special projects.
“We are fully behind the state in support of this decision,” he said.
