Turf Club members sue leadership!

Turf Club members sue leadership!
23 May 2008 - 11:38pm
Penang Turf Club committee sued
Soon Li Tsin | May 23, 08 4:40pm www.malaysiakini.com

The Penang Turf Club (PTC) committee members and several others are being sued
by its members over the deal made with developer Abad Naluri Sdn Bhd to develop
the controversial Penang Global City Centre (PGCC).

The legal action - commenced by Tan Kok Ping and Lee Choon Hoe in their own
capacity and on behalf of all club members - was filed today at the Penang High
Court.

The suit named PTC committee members Ong Eng Khuan, Robert Chan Woot Khoon, Dr
Henry Ooi Kwee Lim, Oon Chong Kie, John Alexander Rodgers, Seow Chin, Tan Phaik
Guan, The Choon Beng, Ch'ng Chin Ghee, club consultant Muhammed Rizal Abdullah,
club financial controller Tan Hock Lim and club assistant general manager and
secretary Leow Khin Ming as defendants.

penang global city centre 170907 buildingsThe PGCC, located in the heart of the
Georgetown, has been billed as the country's largest private sector development
project. It is also the single-biggest component of the Northern Corridor
Economic Region development plan, launched last August.

The developer, Abad Naluri, is an associate company of Equine Capital Bhd
controlled by businessman Patrick Lim, who is said to be linked to Prime
Minister Abdullah Ahmad Badawi. Equine Capital holds 25 percent of Abad Naluri.

Mirroring its Kuala Lumpur counterpart, the PGCC boasts of two five-star hotels,
a performing arts centre, retail complex, two office towers, residential
properties, a world-class convention centre, an observatory tower, parking
spaces, monorail transportation and a public arena.

'Not consulted'

The crux of the suit revolves around some 580 ordinary members of the
well-established horse racing club being kept in the dark over several
agreements signed between the PTC and Abad Naluri.

In 2003, PTC and Abad Naluri, signed a preliminary agreement for the sale of
some 260 acres of the club's land for RM488 million in order to develop the
PGCC. Abad Naluri was expected to raise that sum and manage the financing for
several years before the PGCC project starts contributing back.

penang golf and country club pgcc land scandal chronology 080508From the RM488
million, RM375 million was designated to build a new racecourse in Batu Kawan in
the mainland, relocating PTC's existing racecourse on the island's prime Batu
Gantung Road while the remaining RM113 million would be paid to PTC in cash.
However, this agreement had allegedly lapse and Abad has paid only RM10 million
in advances to PTC so far.

The plaintiffs contend that the defendants failed to impose the condition for
Abad Naluri to pay the club 10 percent from the RM488 million purchase price as
deposit. Subsequently, a formal agreement was signed on May 12, 2004 which
restructured several clauses in the preliminary agreement. The plaintiffs argue
that the changes were not approved by PTC members via an EGM.

Similarly, they alleged members were not consulted when the PTC president and
two members signed a supplementary agreement on April 1 this year that granted
Abad Naluri a renewable extension of three years in fulfilling their contractual
terms.

The plaintiffs also contend that the PTC committee's extension of the 2004
agreement resulted in a loss of revenue to the club after the re-zoning exercise
under the Penang Structure Plan which was gazetted on June 28 last year.

The coveted Batu Gantong land valued between RM410 million to RM430 million was
enhanced to a value of approximately RM2 billion after being re-zoned as a
'mixed development' from 'open recreational' area. The ordinary members also
alleged that the committee has refused to disclose details of the agreements
signed with Abad Naluri despite numerous requests for them.

According to the plaintiffs, all this amounts to breach of fiduciary duties and
the committee - as trustees of the club - failed to act in the interests of the
club in general.

No approval

Hence, the plaintiffs are seeking the following:

* declarations from the committee defendants for acting in breach of their
fiduciary duties

* declarations from secretariat personnel for breaching of their terms of
employment against the club's constitution for exceeding their authority in
executing several agreements

* an injunction to restrain the defendants from further acting in breach of the
club constitution

* penang turf club pgcc 120508 03an order indemnifying the plaintiffs all tax
liabilities imposed pursuant to the supplementary agreement

* damages equivalent to the difference between the value of the Batu Gantong
land on the date of the club's extraordinary general meeting on Nov 25, 2002 and
the execution date of the supplemental agreement April 1 this year

* an order to set up an inquiry to analyse the loss and damage suffered by the
plaintiffs due to the failure of the committee defendants to require Abad Naluri
to pay a sum equivalent to 10 per cent of the purchase price of the Batu Gantong
land as deposit

* aggravated and exemplary damages to be assessed alternatively

Kok Ping and 12 other ordinary members of the turf club previously lodged police
report on May 8 alleging that the PTC committee had abused its powers in its
dealings with Abad Naluri.

Penang Chief Minister Lim Guan Eng has also announced that the PGCC project
cannot proceed because it has yet to be approved by local government agencies.

According to Lim, not a single approval letter has been given to the developer
by government authorities including the Penang Municipal Council and the Land
Office.

PGCC Login or register to post comments
Menu 2
Submit A Complaint

Penang Watch has the twin objectives of encouraging the Majlis Perbandaran Pulau
Pinang to improve its performance by providing it with both positive and
negative feedback; and empowering the citizens of Penang by enabling them to
articulate their views of the local government through the electronic media.
Read morePoll
What is the 1st priority of the new Penang Government?
Restore elected local governments

18%
clean up Penang

15%
scrap PGCC/PORR

3%
Improve public transports

9%
Fight corruption

27%
open tenders

9%
realise Bangsa Malaysia

3%
build more Chinese & Tamil schools

0%
introduce Freedom of Information law

9%
Others

6%
Total votes: 33
10 comments Older polls Latest Complaint
Dyfunctional traffic lights


http://www.penangwatch.net/node/2449


CKinSF
aka running dog chow-kow-sick-fûçkk(cksf)
.

Relevant Pages

  • Re: ACE continues down the shitter
    ... suggested that if you don't like the way club is being run, ... because I'm sure that many on the ACE EC read this newsgroup. ... members are not entitled to. ... that regular members have to pay hundreds for. ...
    (rec.roller-coaster)
  • Re: ACE continues down the shitter
    ... the problem here seems to be the way the people running the club allow ... I know for a fact this is a BIG problem with the EC members. ... Carole had the same problem regarding ... That private party at Hershey wasn't all EC, ...
    (rec.roller-coaster)
  • Re: Did you quit between 2/15/06 & 4/15/06?
    ... the SBF2ers is not a Club for the faint of heart. ... Current SBF2 members - but don't less this dissuade you are John ...
    (alt.support.stop-smoking)
  • Wakefield Meeting - 6th Sept - RAW files and Digital Photography
    ... Barry Thompson is talking about RAW Photographic ... Derbyshire Acorn Risc Club which transformed into the Derbyshire Area ... Sutton - one of our members has written a supporting article in the ... The doors will open at 7.15pm with the actual meeting starting at 7:45 ...
    (comp.sys.acorn.announce)
  • Re: GPSDC at it again
    ... Club Member in front of about 250 members? ... The minutes of the meeting where this occurred will be available soon, ... we lost money at the convention last ...
    (rec.arts.dance)
Loading