The Penang government wants police to investigate Red Movement president Mohd Ali Baharom and several MCA, Gerakan and People's Progressive Party (myPPP) leaders for allegedly organising a protest gathering in Taman Manggis, Jalan Burmah, here, on Friday.

Sri Delima assemblyman, RSN Rayer said he had lodged a police report on behalf of the state government to enable investigations to be carried out against the parties involved.

"At the gathering, some parties had made statements that Chief Minister Lim Guan Eng had seized the rights and opportunities of the poor people in Penang and did not continue with the people's housing project (PPR) in Taman Manggis.

"We hope police will investigate the matter under Section 27 of the Police Act 1967, Peaceful Assembly Act 2012 and Section 499 of the Penal Code," he said after making the report at the Jalan Patani police station, here, today.

Last Friday, about 500 members of Barisan Nasional (BN) and non-governmental organisations (NGO) held a peaceful assembly in Taman Manggis, calling on Lim to build the PPR project or resign as chief minister.

The issue of land in Taman Manggis erupted when it was raised in the Dewan Rakyat by Tasek Gelugor MP Datuk Shabudin Yahaya, who claimed it was linked to the purchase of a bungalow by the chief minister at a price lower than the market value.

Meanwhile, UMNO Youth Exco member, Datuk Jefri Salim today also made a report at the same police station to enable investigations be carried out against Phang Li Koon, the original owner of the bungalow in Jalan Pinhorn, George Town, which was bought by Lim.

Jefri claimed that Phang was willing to lose RM6,000 monthly when renting out the bungalow to Lim and was later willing to undertake more losses when the house was sold at below market value.

"She was renting out the bungalow before this at RM5,000 a month but we found out she was paying RM11,000 in monthly bank installment for the house.

"Here, we see Phang suffering a loss of RM6,000 a month, so we want police to investigate as Phang had earlier said she had no interest with the state government, so why was she willing to suffer the losses without having such interest?" he said.