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Abandoned MCLIC project: Receiver and Purchasers Committee to finalise revival plans

Comment
by Kerk Kim Hock

(Malacca, Sunday):

(I) Shop office price reduced by RM 20,000 per unit for existing buyers

The Malaysia China Light Industrial City project which comprised residential, commercial and industrial development started work in 1997 but work subsequently stopped in mid 1999.

A total of about 200 residential buyers and 300 commercial project purchasers were affected.

The residential buyers had paid about a total of RM 4 mlion while the other purchasers had paid about RM 18 million to the former developers.

A Receiver and Manager was subsequently appointed by the Bank to revive the project.

With revival plan for the residential project being in good progress, the Purchasers Action Committee will be meeting with the Receiver and Manager on coming Sunday (24.11.2002) to finalize the revival plans for the commercial and industrial development project.

Late last year, the Receiver had proposed a revival plan involving an option for the commercial and industrial project purchasers to exchange their industrial lots for shop office priced at RM 230,000 per unit.

The major terms were as follows:

  1. That the previous payment paid by the purchasers will be credited and transferred to the new shop office purchased
  2. That the Receiver must receive a minimum of RM 110,000 for every shop unit purchased so as to allow the Receiver some basic amount to revive the project, (Hence, all credits cannot be used for one single unit)

The Committee decided to let purchasers make their own choice and so far only 10 % have accepted the offer.

Following requests from the purchasers, the Committee has asked the Receiver to come out with a revival plan involving more options for the purchasers. The plan must include land development for those who choose not to accept anything other than developed land.

The Receiver has worked out a revival plan with 4 options as below:

  1. Exchange for shop office
  2. Exchange for single storey terrace house
  3. Exchange for double storey house
  4. Deliver land developed

We will announce the details after we have worked out and finalise the necessary conditions with the Receiver this coming Sunday on 24.11.2002.

A meeting of all purchasers will be held in December if all terms can be satisfacoririly worked out.

Nevertheless, I wish to announce that for the existing exchange for the shop office plan, the Receiver has agreed to reduce the price per unit of RM 230,000 by RM 20,000. That is, the new price is RM 210,000 per unit for existing buyers.

The price remains at RM 230,000 for the new buyers. About 30 existing buyers who have taken up the exchange offer earlier in the year will also be able to enjoy the credit of RM 20,000 per unit.


II. Committee to pursue question of professional negligence of previous lawyer (for REDIDENTIAL PROJECT)

With regard to the question of the possible professional negligence of the lawyer, the Committee will decide the course of action at appropriate time.

The Committee will pursue the question of professional negligence because we believe that, before advising buyers to sign the S & P, it was the responsibility of the lawyer to check whether the former developer had possessed any valid developer 's license as well as to make a land search to confirm whether the then agricultural land status had been converted to housing land.

The former developer, Bukit Rambai Park Sdn Bhd, when signing the Sales and Purchase agreement with the House buyers, did not possess any valid developer licence and the agricultural land was not converted to housing land.
(17/11/2002)

* Kerk Kim Hock, DAP MP for Kota Melaka and Advisor to the Malayisa China light Industrial City Project Purchasers Action Committee