No proposal to revive RM300mil project

27/09/2001 The Star By Devid Rajah and Christina Tan at the Malacca State Assembly yesterday

THE state government has not received any proposal from developers to revive the RM300mil Bandar Melaka Utama project in Semabok, which was abandoned in 1998, said Chief Minister Datuk Wira Mohd Ali Rustam.

He told the assembly that two development companies showed interest but did not confirm their intention to revive the commercial development project on state-owned land.

Ali, who was replying to Sim Tong Him (DAP – Banda Hilir), said the two companies concerned were unable to get financing.

''The state has no knowledge of newspaper advertisements that the project would be revived,'' he said, adding that the state had terminated the contract with the former developer, Liga Maju Sdn Bhd.

He said Liga Maju did not complete the project and had breached some of the contract clauses.

Earlier, state Housing, Local Government and Environment Committee chairman Datuk Momin Abdul Aziz told the assembly that the land still belonged to the state.

To another question, Momin said the state was aware that the land had been mortgaged under a third party charge to MBf Berhad to obtain a bridging loan of RM135mil.

Sim said a company called Prestige Sdn Bhd, with a paid-up capital of RM2, was used to obtain the loan.

Momin said the state, which had assigned a legal officer to look into the contract matters, was investigating Liga Maju to take further action against them.

Developers were always looking at ways to exploit loopholes in all contracts, Momin said when Sim asked if the government had knowledge that a former director of Liga Maju had transferred all his shares from Liga Maju to another company.

''The lawyer will check the contract to determine if there was a condition to prevent the transfer of directors’ share to another company,'' he said.

The Bandar Melaka Utama project affected 390-odd commercial property buyers from all over the country.

Liga Maju collected 20% in deposits from shoplot and other commercial unit buyers.

The developer was also responsible for the building of a new bus terminal for the Municipal Council.