(July 8): With plans to freeze all land dealings related to controversial 1Malaysia Development Berhad (1MDB) in the state, the Penang government today warned those  who might be thinking of making deals with the federal government investment arm.

Chief Minister Lim Guan Eng today told them to be careful and not blame the state if action was taken against them in future.

"If any action is taken after this, do not use the excuse that you don’t know.

"The warning has been given today. You are now forewarned,” he told reporters at his Komtar office.

Lim said the Penang government, which had its state executive council meeting this morning, was also prepared to exercise its administrative power to freeze all land dealings concerning 1MDB.

He said the state secretary has been instructed to monitor the issue while the state studied the law before deciding on its next move.

“We will take stern action but we will do it in the confines of the law. We have power over land matters, including the transfer of land ownership.

“For the sake of national interests, the state can also intervene (in land matters),” he said.

Lim said there were grounds for the state to take action, in view of the financial scandal surrounding 1MDB, which has recorded RM42 billion in debt in just six years of operation.

Yesterday at a gathering of opposition politicians and non-governmental organisations representatives at the Parliament compound, Lim said his administration would look into stopping all land deals in Penang that are related to 1MDB.

It was reported that 1MDB bought 234 acres of land in Air Itam just before the 2013 general election.

He again pledged that the state government would protect the interests of some 3,000 families living on the land.

1MDB was recently hit by another scandalous expose by business daily The Wall Street Journal, which published an article alleging that investigations into the company found a trail of cash that led into the personal accounts of Prime Minister Datuk Seri Najib Razak.

Najib has denied the allegations and is mulling legal action against the newspaper. – The Malaysian Insider