The Malaysian Anti-Corruption Commission (MACC) has denied issuing a statement that it has started probing the Penang government’s purchase of a Mercedes-Benz for Chief Minister Lim Guan Eng.

 

In an official statement today, the commission said it was responding to news portals regarding the matter, adding that any statement would be released on its official website.

Today, news portal Fz.com reported that the MACC was trying to establish a link between the purchase of the silver Mercedes-Benz S300L from Lowe Motors Sdn Bhd and tycoon Tan Kok Ping, who is believed to have a stake in the company.

 

The link to Kok Ping is vital, said Fz.com, due to the numerous complaints and allegations in the public sphere and media over the tycoon’s “privileged relationship” with the state government, particularly with Lim.

According to Fz.com , that relationship has benefitted Tan as a businessman.

 

Tan, a director of General Accomplishment Sdn Bhd, ran into some trouble with the state government last year when the company was convicted by the court for illegal clearing of a parcel of land in Bukit Relau.

Lim held a press conference in Penang to seek for higher sentencing on the company, which was merely fined RM30,000 in July last year for illegal land clearing.

 

In an immediate response, state financial officer Mokhtar Mohd Jait denied allegations that the RM100,000 discount came from Tan, saying it is a “total slander”.

“The discount is given by Mercedes-Benz suppliers in Malaysia, not by a dealer. This offer is given to anyone who purchases a 2012 S300L make,” said Mokhtar in a statement today.

Mokhtar said the 2012 S300L model cost only RM298,263.75, 56 percent less than its original price of RM657,218.00.

Mokhtar reiterated that the CM has the right to the use of two cars - S400 and S300 but Lim is currently using only one.

The Toyota Camry 2.5 previously used by Lim has been handed over to Penang state legislative assembly speaker Maktar Shapee, Mokhtar said.

He added that earlier, the state had planned to purchase the Merc for the 15 state executive councillors including the CM as the car is “safe and durable”.

‘Sales tax and excise duty too high’

This did not happen as the sales tax and excise duty was too high and the state failed to obtain tax deductions for the cars, he added.

Furthermore, the Mercedes-Benz suppliers could not give a written guarantee that the booking of the cars can be cancelled if the state failed to obtain the necessary tax deductions, Mokhtar explained.

“The CM and the state exco members had refused to purchase the cars at its ordinary price including tax and without a fleet discount as done by other states as the cost would be too high,” he said.

“The procedure to apply for tax exemption is that the car must be purchased before the application is made to the Customs Department,” he added.