PENANG, 31 March 2009: The Penang government has frozen all forms of operations at three quarries in Seberang Perai Tengah (SPT) effective today pending investigations.
Chief Minister Lim Guan Eng in a statement today said the three companies concerned were Kuad Sdn Bhd, Batu Tiga Quarry Sdn Bhd and Saw Chong Teok Quarry Sdn Bhd.
The freeze was to facilitate investigation into alleged under-declaration of royalty which caused the government to lose revenue, he said.
Lim said the investigation involved the royalty rate which was said to have been reduced from RM3 to RM1 per cu m of red earth or rock materials.
The freeze would not be for long and would be lifted once the investigation was completed, he said, discounting the possibility that follow-up investigation would be conducted on several other quarries.
The state Land Committee decided yesterday that state Agriculture and Agro-based Industry, Rural Development and Flood Mitigation Committee chairperson Law Choo Kiang would conduct the investigation.
Law, when contacted, said the investigation would start immediately to avoid further losses. — Bernama