Tuesday, 14 February 2012

Bayan Mutiara Deal: RFP is NOT an Open Tender and what is DAP CAT again?

"Request for Proposal (RFP)  is an invitation to enter into a negotiation.The successful proposer is given an opportunity to negotiate with the owner, but not yet awarded contract."

"Open tender is a bid process open to all qualified bidders and where the sealed bids are opened for scrutiny and the successful bid are chosen on the basis of price and quality."

The Bayan Mutiara deal between the Pulau Pinang DAP State Gomen and Ivory Properties Group Bhd. has drawn a lot of heat recently, even Mr. Polite himself Mr. Anil Netto had much misgivings and I (selectively) quote "Market price for the land is “not even RM150 psf”? Hmmm… and the GDV is RM10bn?"  and "PDC should never have sold this land lock, stock and barrel to a private developer. Instead, it could have sold a small part of it and used the funds raised to provide social amenities, a large public park and affordable housing. You cannot put a price on such things"

There are many criticism coming CM Guan Eng's way for selling super prime land at a very low price compared to adjacent development in what seems to be a not so CAT transaction:

Read in Full Here

Read in Full Here

Notable bloggers has come up in arms over the issue read here at BigDog and SatD. Something must really be wrong if  Mr. Anil Netto blogged quite a bit about it too, read here and here and I am sure he will continue to do so in the interest of Penangites.

Guan Eng as usual will attack his critiques with all guns blazing, but something tells me that this might be the start of his Waterloo:

Read in full here

Why I said that? 

A request for proposal is NOT an Open tender no matter how often Guan Eng want to say it and this is confirmed by Ivory's announcement to the Bursa:

Read in full here

The purchase price was arrived at after negotiation with the Chief Minister Incorporated and PDC and apparently instead of the customary 99 years lease, Ivory will be issued with freehold land titles too:

Read in full here

The proposed development is expected to generate a Gross Development Value (GDV)  of RM10 Billion, pretty good money for Ivory I must say, considering that the PDC can by itself do the development themselves albeit in stages as the previous BN State Gomen had made them do many times before, sadly and strangely PDC suddenly lost all ability and confidence to do the same thing under the DAP State Gomen.

When Penangites who voted the DAP Gomen in wise up to what is being done now they will be asking and expect real answers from Guan Eng and the DAP, not political ones, it seems the DAP has sold out the  people of Penang, even the low cost housing developments are being transferred to mainland Penang while the expensive ones remains on the Island.

Yes I am sure Penangites in particular and Malaysians in general would sure like to hear Guan Eng answer these particular questions on the Bayan Mutiara deal in the name of Competency, Accountability and Transparency, CAT lah tu. Don't answer like don't want to answerlah because this time Guan Eng you cannot pin the blame on BN conspiracy or fitnah or whatever. 

Read my lips: A Request for Proposal is NOT and an open tender. Bye-bye CAT.

1 comment:

Anonymous said...

The main question is not about transparency only. Due dilligence was not done. An accountant like LGE should know better. Ivory Debt to equity ratio is almost one with 100 mil debt outstanding. No crazy banker is going to lent them 1 bil plus. There are rumours that Ivory is having trouble coming up with cash to even pay the deposit