Sabah Government Accused of Breaching Statutory Duty over RM16 Million Bank Guarantee
Background
The Sabah government has been accused of breaching its statutory duty after it admitted to allowing a RM16 million bank guarantee for a condominium housing project to expire. The guarantee was meant to ensure the project’s completion, but it was not renewed since 2020 and has since lapsed.
Buyer’s Concerns
Warisan vice-president Junz Wong has expressed concerns over the situation, stating that buyers were informed at a meeting on September 2 that their 5% performance bond had not been renewed and had lapsed. Wong is urging the state government to come clean on what happened to the RM16 million. "Where did the money go?" he asked.
Ministry’s Response
In response, the Ministry of Local Government and Housing has stated that potential white knights would need to pay the outstanding amount if they want to rescue the project. Wong has ridiculed this statement, saying that the guarantee is meant to be used for dire situations, not to line the pockets of government officials.
Legal Concerns
Wong has also accused the ministry of breaching its statutory duty to ensure the guarantee was properly renewed and taken care of. He is concerned that the stipulation that buyers would have to top up the RM16 million if white knights refused to do so is in violation of the law.
Conclusion
The situation raises serious questions about the Sabah government’s handling of the condominium housing project. The government’s failure to renew the RM16 million bank guarantee and its handling of the project’s future has left buyers feeling uncertain and concerned. It is crucial for the government to come clean on what happened to the money and to provide a clear plan for the project’s completion.
FAQs
- What is a performance bond?
A performance bond is a guarantee against the failure of the contractor to complete the project. - What happened to the RM16 million bank guarantee?
The guarantee was not renewed since 2020 and has since lapsed, leaving the project’s future uncertain. - What is the ministry’s plan for the project’s completion?
The ministry has stated that potential white knights would need to pay the outstanding amount if they want to rescue the project, but Wong is concerned that this is in violation of the law. - What is the next step for the project?
The project’s future is uncertain, and buyers are waiting for the government to provide a clear plan for its completion.