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What are the options now for the PR Government on the Kampong Buah Pala issue? PDF Print
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Monday, 13 July 2009 12:10

I see a piece of land lying seemingly unattended and then I work out a scam to sell it. I disguise myself as a buyer and I then buy the land from my undisguised self who is selling the land. How is that for disingenuity.

By Naragan N

Well, this is more or less what seems to have transpired in the case of the land on which sits Kampong Buah Pala.

Let me lay out the facts for all to know. All of these facts and associated arguments can be corroborated with documentary evidence and be supported by appropriate Acts of Parliament.

The land known as Lot 698 Bandar Gelugor, Daerah Timur Laut, Pulau Pinang, was once owned by Helen Margaret Brown in the 1930s. The tenants of the land at that time were the forefathers of the current residents. This piece of land was surrendered to the then Governor of the Straits Settlement, Sir Thomas Whittaker on 23rd Dec 1937. It was not surrendered to the Governor of Penang but to the Governor of the Straits Settlement. This point is of fundamental significance to the issue of who is the owner of the land.

The Government Gazette of the 27th of Aug 1953 clearly recorded that the said land “is needed for a public purpose, namely for the Housing Trust”. The land then came under the purview of the Housing Trust Act. This also clearly establishes that the land was a Trust land, meaning the owner of the land was the Trust. Then with the introduction of the Housing Trust Dissolution Act of 1976, the Trust was dissolved. According to Section 5(1) of this 1976 Act:

“5(1) All lands that immediately before the commencement of this Act were vested in, or reserved under any written law relating to land for the purposes of, the Trust shall upon that commencement vest in the federal lands Commissioner for the purpose of the Government”.

“Government” here is defined in the Title section of the Act to mean the Federal Government.

This makes the Federal Government the owner of the land.

Here then is an important fact – there is no document transferring this land to the Penang State Government from the Federal Government.  The Penang State Government is not the owner of this land, yet it  sold the land to Nusmetro Ventures. Per the National land Code (Act No 56 of 1965) Division V – Alienated Lands, Section 340

“Registration to confer indefeasible title or interest, except in certain circumstances:

Subsection 2(b) The title or interest of any such person or body shall not be indefeasible where registration was obtained by forgery, or by means of an insufficient or void instrument.”

When one does not possess documents to show one is the owner then it becomes a sale by a void instrument. The sale therefore is not legitimate in law.

According to all of the above the sale becomes null and void.

But the sale was made anyway. This could have happened only through devious collusion of several parties over a period of time and by fraudulent transactions. All this was transacted by the then Gerakan/UMNO State Government, Senior Members of the Koperasi Pegawai Kerajaan Pulau Pinang, Senior Officers of  the Land and Mines Department, the State Legal Department, The State Secretariat , the State Economic Planning unit and probably others too.

They were the ones that moved the documents, they were the ones that prepared the documents, the various working papers to the EXCO of the Gerakan/UMNO State Government and they were the ones that approved everything. The Koperasi that was the beneficiary was the Koperasi of the State Administrators – the State Chief secretary was the Chief of the Koperasi when much of this transpired. This is exactly the corruption that we need to root out from our country. This is all just dignified usurpation.

The rights of the ground tenants just did not figure, but as an afterthought at the conclusion of the deal. Now that we have the approval, how do we deal with the troublesome squatters … bring in the gangsters, bring in the police, bring in the bulldozers. This rot in our system has to be eliminated. The laws of the country cannot be violated willy-nilly by those in power. Our system needs to be strengthened.

What Options for the PR Government

The present PR Government must give up its intransigent position, understand time is running out and take positive actions to sort this mess out. It does not matter now that it did not create the problem. It is an opportunity to catapult into the Federal Government in the next General Election if it plays its cards well on this and other similarly challenging issues in the future. This is truly a test of its competency.

The steps it needs to take:

1)      Use the provisions under the law that empowers the State Government to acquire land. It is indefensible to say that it is going to cost this much or that much. The land is leasehold, ownership is in dispute, and it was just sold 15 months ago for RM 3.2million, it represents a heritage that could be lost for all posterity. Anything short of acquiring the land immediately will render this whole issue academic. It will become something else altogether after the bulldozers come in.

2)      Stop trying to tease the villagers into accepting compensation. They do not want any compensation, they just want to retain their village.

3)      Begin a process immediately to identify all the miscreants in this story and all the irregular and fraudulent acts and begin legal proceedings against them.

4)      Establish the lack of legitimacy of the sale and then maybe the State Government may not have to pay a penny at all to the developer.

5)      Use independent lawyers. How can the State Legal Advisor give advice against the  Koperasi Pegawai Kerajaan Pulau Pinang in which he is a senior member? There is clearly a conflict of interest. It will be naïve on the part of the PR State Government to continue using his advice on this matter.

6)      The PR government, by doing all of this, can redeem its moral high ground, something that has slipped significantly in the past few weeks. See how the situation is evolving – the case against Anwar has just begun, Najib is out wooing with his pack of goodies and who knows what else, the Penang State government’s image has taken a serious beating. Time is not on PR’s side; move fast to do this before much more damage is done.

7)      Section 116,1(d) may not help, check it out quickly as valuable time is passing and it may be too late, if we find out that it does not apply.

We have a very significant opportunity on our hands to move democracy up one notch in Penang. We have to necessarily see bold steps being taken. Truth must prevail and all those who want to maintain an old, rotten and corrupt system have to be dealt with summarily and clearly.

Can the Pakatan Rakyat Government provide the leadership to move forward and on?

Comments (19)Add Comment
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written by chiongguo, July 13, 2009 12:23:52
This is very good research work. For a long while amidst all the hue and cry the way forward was murky and uncertain. It is now clear, if all the acts you quoted were correct and relevant, that there were collusion in high places within the penang civil service.

The way is now clear and I think LGE now have very good options.

Kudos.
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written by Wisdom above, July 13, 2009 12:33:43
Now we have accurate DATA for our perusal .
So now we know 'The Kampong Buah Pala issue' was and is still a Federal problem ?

No wonder the Federal Government & AG kept very QUITE?
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written by Jeevan, July 13, 2009 12:33:44
This can be a litmus test not only for the Pakatan Government of Penang, but also its people.

Well written article, and the onus is on the administration of Penang as a whole, not just LGE to take cues from it, on where to find the culprits in this land grab.

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written by mountainking, July 13, 2009 12:36:51
pls somebody inform LGE.
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written by mawi, July 13, 2009 12:52:07
This also tells us that the land also does not belong to the people who are currently
and that they are squatters.Due to the dispute over the legal ownership prior to the sale of the land to the develop, the law must take its course to determine the legal owner of the land before any acquiring can be done. This means that the Federal government is deemed to be as an interested party to the ownership and hence must initiate court injunction over any development on the land and thereafter proceed to allow the court to take its course.If at all , the Federal government, through the court is the legal owner of the land, then all the other issues such as the issuance of a legitimate title, compensation to the developer by working with state govt and the market value of the land can be established.

Then comes the issue of the state government acquiring the land but the funds must not and will never be from the state coffers as that funds publics money and its usage is for the benefit of the public at large like improving public amenities and enhancing education facilities etc etc; not for a handful of people who are nostalgic about where they want to have their house at. If the people in Kg .Bual Pala can fork oput that money, the state government should help them as the power to acquire lies in the state government's hand. But use your own money.

What fairness is there when you acquire the land using state funds (the people's money) and surrender the titkae to a handful of people only to see the reselling the land at the current value and suddenly become instant millionaires. Sounds more like a dubious scheme.
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written by eagle22, July 13, 2009 13:28:02
If Helen Brown is still alive to see all this mess and have the power to return to past. Wonder what she will do ?

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written by Wisdom above, July 13, 2009 13:43:45
Penang State Planning Unit can always re-ZONE & Gazette it ?
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written by singam, July 13, 2009 14:04:51
Well done, Naragan. Now that the facts are clear, it is possible to move forward.

No more lame excuses.

On the dissolution of the Trust, what is the proper process? What are the rights of leasehold tenants who have been paying quit rent? Can the Trust be dissolved without their participation?

On the question of quit rent, is the State Government entitled to collect quit rent of Federal land?
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written by rocky, July 13, 2009 14:31:31
finally someone who makes sense and shows the path forward unlike KTK and Hindraf leaders.

PR and LGE should take some of the advise above and take action now.
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written by mikewang, July 13, 2009 14:45:19
The Federal Court has already ruled that the piece of land belongs to the Cooperative/Developer and that is the final.
All relevant points in law that should have been argued had probably been done in the courts where the kampung folks won the first round but lost in the final.
No higher court in this land can change that fact no matter how much you dig into this.
The legal avenue is closed as a double jeopardy law protects the rights of everyone and brings a finality to every argument.

High Chaparral is no paradise.
In fact, to many, it's probably close to the opposite.
If the residents are given good compensation packages, I suggest that they take the compensation and move on.

Meanwhile, for an alternative viewpoint from a road user, see

http://www1.malaysiakini.com/letters/108218
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written by billykbk, July 13, 2009 14:46:01
I find this article very informative. Brilliantly done.

But, there's only one thing that I sorely disagree.

.....2) Stop trying to tease the villagers into accepting compensation. They do not want any compensation, they just want to retain their village. ....

OMG, you are suggesting that PR govt acquires the land so that the residents continue to stay there. What if the state govt really buys up the land, you mean RM3.0 million just to do that? What if the govt wants to develop that piece of land in future? No? Protests again? Hindraf? Bring cows to CM's office? Is it fair to allocate RM3.0 million to let squatters sit on state land, or Federal govt's land for that matter? What's the bottom line?
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written by lamakawan, July 13, 2009 14:52:26
Good on you, Naragan. Penang needs more people like you who has an interest in Penang problems and go all the way out to get all the relevant information to enlighten the people involved in the dispute.
I shall send this as attachment to Penang state authorities.
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written by 1351, July 13, 2009 14:53:08
Kg.Buah Pala is a Federal issue and the exco has been very careful not to react harshly because the AG in collaboration with the UMNO govt will try their best to make life difficult - you know, I know lah the games UMNO play.

Little help can be expected by present state govt of the Federal govt as this Kg.Buah Pala issue can potentially be a drawn out affair, a stumbling block for the administration instead of focusing their best efforts in running Penang state.

As pointed by Naragan P, the act of transferring ownership of title first time round was itself an act of illegality. Here is the dilemma, if what Naragan P says is true - whether RM$3.2m or RM$32m shouldn't be up for debate - the state govt can't get involve in the purchase of Kg.Buah Pala title as Mawi correctly pointed out.

Two considerations here, the administration is not beholden to the 23 families still residing there(yes, that is the harsh reality) and secondly, it would be a misuse of funds from all existing ratepayers. Paying X amount to the developer would be akin to ransom and legitimising an illegality(the transfer of title to Koperasi Pegawai Kerajaan). Do you see the potential fallout Naragan P ?

Casper
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written by Bigjoe99, July 13, 2009 15:26:42
Everyone knows the land was fraudulently stolen. Even the state courts have ruled in favour of resident of Kampung Buah Pala. BUT our screwed up Federal Court ruled otherwise on appeal.

As well researched as this piece is, it falls short on argument. Its skipping so many things conveniently and just say no excuse is allowed from the state govt.

Why does it not address the issue of Federal Court ruling which the residents did themselves and failed? What does it propose the state govt do against that. If the state govt unilaterally seize the land, it is subject to lawsuits by the developer.

These guys have been given excuses to death and now they want to do the same to someone else. That is all it is...
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written by Kathy, July 13, 2009 15:56:56
Thanks to Mr Naragan for laying out a brief history of this saga. Obviously BN will have to work with the PR govt. in Penang to resolve this as this issue started on BN's watch. For the sake of the residents, put politics aside and do something decent for once. smilies/angry.gif
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written by Sinewy, July 13, 2009 17:08:59
Sure the predicament of residents of Kampung Buah Pala need a solution fast but at the same time when the UMNO/BN and the Federal Court screwed up the Kampung Buah Pala folks in their crony deals, many people readily screw the PR state government for not going for broke to solve the issue. BY all means screw the PR state government, especially DAP for all you want and put up the UMNO/BN government next time since there are people who don't mind being screwed by the UMNO/BN government for the last 50 years...
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written by carribeanking7, July 13, 2009 18:23:09
I salute Naragan for his effort and articulations but will it work ?
As the title has been issued Nusmetro is legally the owner as adjudicated by the high court,
Only a judicial review can reverse this decision.
As for his contention that "there is no document transferring this land to the Penang State Government from the Federal Government"

It is not necessary :Under Section 76 of the National Land Code Parliament has expressly given the powers to the State Authority whether to alienate State land for a term not exceeding 99 years or in perpetuity “where the State Authority is satisfied that there are special circumstances which render it appropriate to do so”.
That is what the previous state government did, Koh Tsu Khoon quoted the trade off as land given to build a courthouse.

LGE tried to stop the demolition of homes by invoking article 116, the very next day Thomas Chan executive director of Nusmetro arrogantly said under sec 116 1(d) of the act"does not apply to squatters and illegal structures" He is calling the settlers ... Read Moresquatters and their homes "illegal structures", he insists on demolition,
so why isnt anybody vilifying him.
Koh Tsu Khoo gave evasive answers when the minutes of exco meeting showed without a doubt what had happened, he diverts the issue by asking DAP in issuing the chronology of their promises,This is like a thief being caught cheekily asking the judge to let him go and charge the police for failing to protect the victims against him.
His suggestion is still to acquire the land, but the question is will Nusmetro agree to the RM3.2million they bought it for ?
Or is Nusmetro indeed willing to sell ? If so , at what price ? Judging from Thomas Chan's pronouncement it dioes not look like Nusmetro is going to give up easily.

I still stand by what I suggested earlier when this issue gained public attention
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I do wish that LGE went down personally to the ground to meet the villagers, like he did when he visited Mak Mandin fire
victims in September last year.The fact that LGE was moved to tears when he tried to console the victims of a predawn fire in September last year.
He won many hearts due to his visible and genuine concern.

Eviction should be the LAST RESORT.

The land was reported to be alienated to Nusmetro for a ridiculous RM10 psf, why is MACC not investigating ?
I reiterate again dig up the shit on Nusmetro, if there is concern for exposure to something adjudicated by the courts, do it outside of court, tell Nusmetro to take back the RM10 psf they paid, or get blacklisted in all Pakatan states forever.
Let's make public the minutes of the previous exco meetings when discussing the sale of this piece of land and put to rest speculation once and for all.

One other avenue to explore, is for MACC start an investigation into how the developer acquired the land for RM10psf, obvious graft and abuse of power by the previous state government is involved.
A judicial review should be filed to stay the eviction order pending the outcome of MACC investigation.
make a report to MACC and castigate them if they do not open an investigation..
When the land was "gifted" more than a hundred years ago, what were the conditions on the Trust deed, was it stipulated
that the State Government could dispose the land ? If Yes, under what conditions ? Where is this document now ?
What I am suggesting is that MACC start an investigation, at the same time ask the court to stop the eviction order temporarily until investigation is over.
This will give the villagers some breathing space,
and if the investigation proves wrong doing charge the culprits involved and return the land to the people.
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Since then, so far, the minutes of the prevous exco meeting has been made public,Penang state government has lodged
a report with MACC today 13/07/09, the next step is to apply for an urgent judicial review, and a court order to halt
the impending demolition of the villagers homes on 02/08/09 pending this review.
If anyone has better ideas out with it quick, time is running out.

Vijay Kumar Murugavell


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written by AsamLaksa, July 13, 2009 18:30:12
How about designating the land as not for development due to historical and cultural heritage? No development = low value. Low value = cheap to buy back. But hey I'm not a legal expert.
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