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State govt wants to seize project from developer

07/10/2008 The Star By Martin Cavalho

MALACCA: The state is in the process of obtaining a court order to seize the Pulau Melaka project from the company which had been appointed to revive the stalled billion-ringgit reclamation project.

State housing, rural development and project revival committee chairman Datuk Ghafar Atan said legal proceedings had been initiated against the company as it had failed to settle its premium payments.

“Despite being given ample time by the state to settle its dues following earlier negotiations, it failed to do so,” he said told reporters after a key presentation ceremony to homeowners at Taman Suajana Bukit Katil recently.

He assured purchasers that although they may have no legal rights, “we will assist them as it is not their fault but that of the developers.”

The estimated RM1.4bil Pulau Melaka project was launched in 1996 involving mix development on two man-made islands off the Bandar Hilir coast.

Although recording over RM190mil in sales, only one 45ha island was reclaimed and partially developed before the project stalled.

Earlier this year, the project was revived by court-appointed recievers with Phase I, Phase II and Phase III targeted for full completion within 18 months.

Ghafar confirmed that 521 out of 612 four-storey shoplots units had been sold under Phase I and 589 out of 762 similar units were sold under Phase II, while 85 apartment units out of 165 were sold.

He said Phase I is 90% completed with Phase II at 85%, while the apartments under Phase III are 100% completed.

However, he said units could not be occupied as the developer had yet to complete the sewerage system and pipe fittings.


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