To check on the current Penang Government.: 'Iconic' Penang Sports Club fighting for survival

Friday, October 21, 2011, 03.24 PM

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'Iconic' Penang Sports Club fighting for survival

2011/10/17
By Sharanjit Singh
sharanjit@nst.com.my

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GEORGE TOWN: The 64-year-old Penang Sports Club (PSC) which is located at one of the last green lungs and most valuable lots on the island is believed to be on the brink of losing its clubhouse along with the main car park, swimming pool and most of the tennis courts as it struggles to come up with RM24 million to renew its lease.

The club, it is learnt, has failed to raise the sum and its appeals to pay in instalments were rejected by the state government.

PSC had tried to negotiate with the state government to fork out RM5 million as upfront payment and annual instalments of RM500,000 for 38 years but this too was rejected.

Following the rejection, the offer to renew the lease, which expires on April 9, 2017, had lapsed.

The New Straits Times has learnt that the club is still trying to persuade the state government to relax its stand.

The PSC general committee has declined to comment as there are still ongoing efforts to resolve the issue.

Chief Minister Lim Guan Eng is the state executive councillor in charge of land matters. The PSC lease issue comes on the back of recent controversy surrounding a state DAP assemblyman who managed to get a 60-year lease on a plot in Bukit Mertajam.

The lease was granted to Padang Lalang assemblyman Tan Cheong Heng and his brother, Chong Hock, at an 80 per cent discount.

The state government's decision to grant them the lease is still being debated after Penang MCA secretary Lau Chiek Tuan said that he had copies of past executive council meetings which showed that three technical departments had previously objected to the application by the brothers as the land was needed for water retention and a flood mitigation project.

Lim has defended his administration's decision saying that it was the state government's policy to return land to the people, especially when their lease expired.

Parti Cinta Malaysia (PCM) vice-president Huan Cheng Guan yesterday questioned why Lim was making it so difficult for the sports club to extend its lease if it was his policy to return land to the people.

"The PSC is an iconic club which has produced many sports personalities and is very popular among the people here.

"Why does the state government want to take it away from the people by imposing strict conditions for it to come up with RM24 million immediately. Why is he also not offering them any discount on the premium like he did for the DAP assemblyman?" Huan questioned.

He added that the state government had an obligation to the people not to seize recreational facilities like PSC as it was one of the last places on the island where people could relax and unwind.

PSC, its majestic colonial structure covering 6.4ha and located in the heart of George Town, was set up in 1947. Over the years it has experienced enormous growth. It is the largest family club that houses many sporting, leisure and recreational facilities for members.