Datuk Mohd Ali Rustam should give government guarantees against any possible failure of the proposed RM 1 billion “Venice of the East” six islands reclamation project off Portuguese Settlement to ensure there is no repeat of the Pulau Melaka abandoned project fiasco
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Press Statement
by Lim Guan Eng
__________________
(Melaka,
Wednesday):
DAP
urges Melaka Chief Minister
Datuk Mohd Ali Rustam to give
full government guarantees
against any possible failure
of the proposed RM 1 billion
“Venice of The East” six
islands reclamation project
off Portuguese Settlement to
ensure there is no repeat of
the Pulau Melaka abandoned
project. DAP is surprised
that Mohd Ali is still
talking about reclaiming as
many as 6 man-made islands
again despite the abysmal
failure of the Pulau Melaka
twin-island project.
Mohd Ali said during
Christmas that the state
government has approved the
reclamation of a 72ha site
off the Portuguese Settlement
here for mixed development to
Bumi Tabah Sdn Bhd. The
public can not be faulted for
asking the chances of success
of a little-known company
with no track record in land
reclamation in delivering
this complex reclamation
project that creates 6
artificial islands as
promised, when listed
companies with a track record
in carrying out huge
construction projections have
failed.
For instance the only
artificially-created island
in Melaka, Pulau Melaka is
under receivership when the
shop houses were supposed to
be completed in 2000. Billed
also as a RM 1 billion
project in 1994 and supported
by publicly-listed companies
on the Kuala Lumpur Stock
Exchange such as Larut and
Talam Corporation, two
islands linked by land
bridges with an area of 100
acres and 125 acres
respectively were supposed to
be created. However only one
island was created and even
that was abandoned. When the
project was abandoned, the
1,386 purchasers who paid
nearly RM 100 million faced
extensive losses. Presently
the receivers are trying to
revive the project.
The state government must
bear some responsibility
because they had approved and
endorsed this Pulau Melaka
project fully. When the
project faced financial
difficulties, the state
government refused to pump in
money to revive the project
and did not take any action
against the developers who
had cheated the purchasers of
the monies.
With such a poor record in
creating artificial islands,
the fear is that the same
problems bedeviling Pulau
Melaka would also affect this
proposed Venice of the East
project. Would Ali Rustam
disclaim responsibility if
similar problems affect the
RM 1 billion 6 artificial
islands of the Venice of the
East project comprising
hotels, shops and high-end
residential apartments?
To ensure that the interests
of the public is protected
and that purchasers of the
Venice of the East project do
not face the same problems as
Pulau Melaka, the Melaka
Chief Minister should give
full guarantees that the
government would bail out,
rescue and revive the project
if it fails and is abandoned.
Only then will purchasers buy
the Venice of the East with
assurances that their
investment has both value and
security.
(26/12/2007)
* Lim Guan
Eng,
Secretary-General of DAP |