Six-month bonus for what? Penang reps denounce PDC over RM6.7m payout amid budget deficit

GEORGE TOWN, 20 May — Several Penang backbenchers have questioned the rationale behind a six-month bonus for staff of the state-owned Penang Development Corporation (PDC), particularly given the state's deficit budget.

Joseph Ng Soon Siang (DAP-Air Itam), Lim Guan Eng (DAP-Air Putih), and Lee Khai Loon (PKR-Machang Bubuk) sought explanations during their respective debates at the state legislative assembly yesterday and today regarding the approval of the bonus.

Ng argued that while the state government is facing financial constraints, PDC opted to announce the large bonus for its staff instead of potentially using funds to pay off debts owed to the government and banks.

“PDC is not a private company as it is a GLC with assistance from the state and federal government in terms of land acquisition and loans,” he said.

Lim said the six-month bonus announced for PDC staff was reportedly the highest of all government agencies.

“Who is receiving this six-month bonus?” he asked, noting that the total bonus payout was RM6.7 million.

He argued that if the bonuses were clearly justified, they would not have become such a hotly discussed topic among civil servants.

Lim also raised concerns about controversies involving PDC, such as the five-year delay in the expansion of Jalan Perusahaan to Jalan Tok Kangar in Central Seberang Perai.

“The project, costing RM21.6 million, was supposed to be completed by 2021 but is now expected to be finished at the end of 2026,” he said.

He also brought up the Ladang Byram/Changkat issue, involving 559 acres of land initially sold through direct negotiations to UMECH Construction Sdn Bhd for RM646 million.

Referencing the state’s financial situation, Lim pointed out the need for a RM100 million advance from the federal government.

“The state must explain why its financial situation has worsened, where RM1.15 billion in its consolidated revenue accounts in 2019 had dropped by RM1.1 billion by the end of 2024,” he urged, asking for a detailed breakdown of expenditures that led to consecutive deficits between 2019 and 2024.

Lee questioned whether the PDC staff bonus is contractual or a recent development, and asked how the amount was decided.

He noted that 54 per cent of PDC’s revenue is derived from land sales, while 22 per cent comes from profits on investment sales.

“Aren’t these state lands? If so, shouldn’t the revenue from their sale be returned to the state government and not distributed as bonuses to PDC staff?” Lee queried.

Another backbencher, Gooi Hsiao-Leung (PKR-Bukit Tengah), also expressed concerns about the state’s fiscal deficit, which he said has persisted for 13 consecutive years.

“Our consolidated funds have also declined from RM2.2 billion in 2022 and RM2.1 billion in 2019 to a mere RM199 million as of May this year,” Gooi said, calling the situation unsustainable.

“We are asking for a new fiscal framework to be formulated in the 13th Malaysia Plan that reflects respect for Penang’s role, recognition of our constraints, and responsibility from the federal government,” he proposed.

Gooi suggested that the federal government provide a share of Sales and Service Tax (SST) revenue, introduce a new formula-based equalisation grant for all states, implement transparent fiscal transfer mechanisms, and offer incentive grants for high-performing states.