PRESS STATEMENT BY YAB CHOW KON YEOW, CHIEF MINISTER OF PENANG KOMTAR, GEORGE TOWN, 1 DECEMBER 2023  

PRESS STATEMENT BY YAB CHOW KON YEOW,

CHIEF MINISTER OF PENANG

KOMTAR, GEORGE TOWN, 1 DECEMBER 2023

 

I refer to the following matters –

• the press conference on 1 December 2023 (“1 December 2023 Press Conference”) organized by the Secretariat of the Silver Jubilee Home For The Aged (“Silver Jubilee Home”); and

• Tan Sri Dato’ Seri Tan Kok Ping’s (“Tan Sri Tan”) letter dated 2 June 2023 which raised, among others, the following matters –

• Tan Sri Tan’s proposed project involving the construction of 5 blocks of workers hostels and an amenity block on a currently unutilized portion of vacant land (“Proposed Project”) which also houses the Silver Jubilee Home. The land in question belongs to the Penang and Province Wellesley Silver Jubilee Fund (“Corporation”), in which I am the Chairman of the Corporation’s Board of Trustees (“Board of Trustees”); and

(b)    Tan Sri Tan’s notice of resignation as a Trustee of the Corporation (“Tan Sri Tan’s Resignation”).

For a better perspective of the 1 December 2023 Press Conference, I shall address the Proposed Project and Tan Sri Tan’s Resignation accordingly.

1. PROPOSED PROJECT

 

1. Meeting of the Board of Trustees on 19 April 2022 (“April 2022 Meeting”)

1. I attended the April 2022 Meeting together with Tan Sri Tan and two other Corporation Trustees, Dato’ Loh Yeow Boo and Mr. Bernard Kok. During the meeting, I was briefed by the three Trustees in respect of the Proposed Project and the preparatory works which they had commenced earlier on their own accord.

1. The briefing also included verbal clarification on the proposed terms and conditions of agreements relating to the Proposed Project.

1. I acknowledged the Trustees’ efforts, particularly Tan Sri Tan, in using the Proposed Project to generate sustainable income for the Silver Jubilee Home. However the Proposed Project is not exempted from adhering to, and meeting the requirements of all due processes.

2. Draft Documents Relating To The Proposed Project (“Draft Documents”)

1. Sometime in July 2022, my office received the following Draft Documents –
2. Master Contract;
3. Tenancy Agreement;

• Lease Agreement; and

1. Power of Attorney (“POA”).

The Draft Documents were to formalize contractual relationships between the Corporation and a company identified as Magnificent Emblem Sdn. Bhd. (“MESB”). MESB was subsequently replaced by another company identified as Winbond Holdings Berhad (“Winbond”).

1. Save for the draft POA, the remaining Draft Documents included the following reference to the Corporation in its respective capacities –
2. Master Contract – “The Corporation is unrepresented”;
3. Tenancy Agreement – “The Landlord is unrepresented”; and

• Lease Agreement – “The Lessor is unrepresented”.

In legal speak, reference to a party being ‘unrepresented’ indicates that the Corporation is not legally represented by any registered legal firm. At all material times, both MESB and Winbond were legally represented by the same legal firm.  

3. Opinion from the Penang State Legal Advisor Dated 22 August 2022

1. Based on the Draft Documents, it was clear that the Proposed Project was to be carried out by way of direct engagement with MESB, and then subsequently Winbond. The Proposed Project did not go through an open tender process.

1. Seeing that the Corporation was not legally represented and in adhering to the CAT [Competency, Accountability and Transparency] principles which have always been the backbone of the Pakatan Harapan-led Penang State Government, I instructed my office to send the Draft Documents to the State Legal Adviser’s office for their advice and comments.

1. The then State Legal Adviser subsequently provided me with a legal opinion on the Draft Documents by way of a letter dated 22 August 2022 (“SLA’s Opinion Dated 22 August 2022”). It must be emphasized that –

• advice was given for the primary issue of protecting the Corporation’s interests in the Proposed Project, including, among others, the following –
• the use of land as envisaged in the Master Contract and Lease Agreement must always be in adherence to the principles of trust that governs the Corporation; and
• the POA is envisaged to grant Winbond with exclusive use and enjoyment of the land. As the POA is an irrevocable instrument, the Corporation is cautioned that any granting of rights to Winbond must adhere to the principles of trust that governs the Corporation; and

• contrary to what was alleged in Tan Sri Tan’s Letter, the SLA’s Opinion Dated 22 August 2022 did not state that the Proposed Project should not proceed for reason of ‘trust and integrity concerns’.

4. Suggestion for the Corporation to seek independent legal advice

1. Having weighed on the content of SLA’s Opinion Dated 22 August 2022 and the fact that the Corporation was not legally represented, my officer was then instructed to convey my suggestion that the Corporation should engage a lawyer for independent legal advice.

1. This was done by way of an e-mail dated 25 August 2022 to a fellow Trustee who is also a practicing lawyer. A follow-up by my office sometime in October 2022 with the said Trustee indicated that there has not been any action taken as per my suggestion.

1. To date, I have not received any update that the Corporation had in fact engaged an external legal firm for advice.

5. Request for proposal on Proposed Project to be tabled in the Penang State Executive Council meeting

1. As Tan Sri Tan had rightfully reminded in his letter, I hold the Chairmanship of the Board of Trustees by virtue of my position as the Chief Minister of Penang. This is also stated very clearly in section 3(1) of the Penang and Province Wellesley Jubilee Fund Act 1965 (“Jubilee Fund Act”).

1. By virtue of the Jubilee Fund Act, in the spirit of good governance and my responsibility as the Chief Minister of Penang, I am naturally obliged to –
2. inform the Penang State Executive Council (“State EXCO”) on the Proposed Project; and
3. regardless of Tan Sri Tan’s view, to seek the State EXCO’s consent for me to sign the required documents relating to the Proposed Project.

1. Despite my request for the Chairman of the Corporation’s General Committee (who is also a Trustee) to table a proposal on the Proposed Project in the State EXCO meeting, this was also not acted upon until today.

1. TAN SRI TAN’S RESIGNATION

1. Notwithstanding that both the Trustee Act 1949 and Jubilee Fund Act are silent on the requirement of any Trustee having to serve a notice period before any resignation takes effect, Tan Sri Tan’s generous gesture of serving a 6-month notice with effect from 2 June 2023 is duly acknowledged.

2. I take this opportunity to record the Penang State Government’s appreciation to Tan Sri Tan for his commitment to the growth and the running of the Silver Jubilee Home over the last 15 years.

3. While it is regrettable that this partnership may no longer continue, I must make it abundantly clear that in my position as the Chief Minister of Penang as well as Chairman of the Board of Trustees, I owe a duty to ensure that everything on my watch is done in accordance with due procedures and within the proper legal framework.

For the past 15 years which I’ve been part of the Penang State Government, I hope I have demonstrated my leadership style and known commitment in following due processes. In this matter alone, I have proposed for engagement of independent legal advice and presentation to the State EXCO for better accountability and transparency. Though my proposals may not be well-received as some may deem them unsuitable or pose additional obstacles, my conscience will not allow me to decide otherwise.

1. FUTURE OF SILVER JUBILEE HOME

 

1. I take this opportunity to also record the Penang State Government’s appreciation to the following individuals who have served the Silver Jubilee Home in their respective capacities –

1. Bernard Kok, whose resignation as Trustee came into effect since 1 January 2023;
2. Ong Jin Sin, outgoing Treasurer and member of the General Committee with effect from 31 December 2023; and
3. YBhg Dato’ Loh Yeow Boo, outgoing Trustee and Chairman of the General Committee with effect from 1 January 2024.

2. Together with YB Lim Siew Khim who is the State Executive Councilor overseeing welfare matters, we will expediently strive to nominate committed individuals for Tuan Yang Terutama Yang di-Pertua Negeri’s consideration to appoint them as new Trustees.

3. The Silver Jubilee Home was founded decades ago thanks to the philanthropic aspiration of the late Mr. Cheah Leong Keah to care for the aged destitutes in Penang. I sincerely hope that the new Board of Trustees will continue to be equally driven in promoting that vision and ensure that the underprivileged elderly will always have a home.