Penang reveals details on Chief Minister’s Mercedes purchase

The Penang state government has revealed details concerning the purchase of a Mercedes-Benz S300L for the use of Chief Minister Lim Guan Eng (pic).

State financial officer Datuk Mokhtar Mohd Jait said the Palladium silver with grey interior vehicle had been purchased for RM298,263.75 – a figure much lower than the selling price of RM657,218.

"In his capacity as Chief Minister, Lim is entitled to use a Mercedes-Benz S400 and a Mercedes-Benz S300. Lim is merely using one car instead of two," Mokhtar said in a statement today.

He said that earlier, Lim and state exco members had decided not to purchase 15 Mercedes-Benz cars because the taxes and excise duty exceeded the cost of the vehicles.

"The Mercedes-Benz suppliers also did not dare to issue any guarantee letter that they would be willing to take back the vehicles if there were no tax exemptions.

"Lim and the exco members then chose to purchase 15 Toyota Camry 2.5 litre cars which had been given tax exemption."

The vehicles, bought at RM113,500 each, were handed over to the state government on October 31 this year, Mokhtar revealed.

The Penang state government's previous fleet of six Mercedes-Benz and nine Proton Perdana V6 executive cars were between 12 and 21 years old.

The decision to replace the old fleet of vehicles was due to the high maintenance costs as the cars were quite old.

On November 20, the Mercedes-Benz suppliers informed the Penang state government that tax exemption had been obtained and offered the S300L vehicle at the price of RM298,253.75.

Mokhtar said the figure of RM298,253.75 was after tax deductions, which included a RM100,000 discount.

The suppliers also guaranteed that the state government were not obligated to purchase the car and could return it without any costs if there were no tax exemptions.

"A state exco meeting was held on November 20 and unanimously agreed to the purchase of the Mercedes-Benz S300L," Mokhtar said.

"The decision was reached as there was a huge different between the original price of RM657,218 and the discounted price of RM298,263.75.

"The exco felt it was value for money as Mercedes-Benz cars had a long lifespan, similar to the Mercedes-Benz S320L used by former Chief Minister Tan Sri Dr Koh Tsu Koon."

The Toyota Camry 2.5 litre which Lim previously used has been given to deputy Penang state speaker Maktar Shapee. – December 31, 2013.