GEORGE TOWN: Penang Chief Minister Lim Guan Eng criticised the privatisation of Penang Port due to the low price paid by a company linked to tycoon Tan Sri Syed Mokhtar al-Bukhary.

Guan Eng said his administration is disappointed with secrecy surrounding the exercise, saying the RM170 million paid by Seaport Terminal (Johore) Sdn Bhd was too low and can be easily misinterpreted as the sale of public assets for private benefit.

Guan Eng said there was no official announcement of the transfer of management until yesterday — except when he raised the issue in Parliament or when the Penang Port made public announcements.

The port announced that it recorded a 30% rise in productivity since the takeover by Seaport Terminal.

Guan Eng asked Prime Minister Datuk Seri Najib Razak, who is also the finance minister, to reveal the privatisation status of the port, the management mechanism, the amount paid, the port’s outstanding debt and when the RM353 million dredging project to deepen the North Channel to 15m would begin.

Responding on behalf of Najib, Minister in the Prime Minister’s Department Datuk Seri Abdul Wahid Omar said Seaport Terminal has taken over the port for RM170 million but the transfer of equity from Penang Port to its new owner is yet to be completed because negotiations with banks involved are still ongoing to restructure the port’s debt, which has exceeded RM1.2 billion.

On the long-delayed dredging project, he said it is an obligation of the company as stated in the privatisation deal — and it would be done based on the planning of the company and needs of ship docking at the port under the supervision of the Penang Port Commission.

Wahid, however, did not reveal when the project would begin.

Guan Eng said it was “unfortunate” that his question on the dredging project went unanswered, and said it showed Putrajaya had surrendered the requirement that was included in the 9th and 10th Malaysia Plans.

“Without deepening the depth to 15m, the Penang Port would slowly come unstuck in shallower and shallower water.” — The Malaysian Insider

This article first appeared in The Edge Financial Daily, on April 7, 2015.