Henry Shim
KOTA KINABALU: Former Sabah Youth and Sports Minister Phoong Jin Zhe did not approve any eviction notice for the tenants of Wisma Koperasi Serbaguna Sanya Berhad (Kosan) in Likas here.
His former political secretary, Henry Shim Chee On, said during Phoong’s tenure as the chairman of the Kosan’s Board of Directors, he stood firm that no eviction notice shall be issued until the decision is supported by majority members through the 37th annual general meeting.
“In the last few meetings of Phoong’s term before the state election held in September 2020, he instructed the board to look into organizing the AGM as it is the sole proper platform to seek endorsement from all eligible members of Kosan. It was supposed to be held in end of 2020, but due to Covid-19 situation it was delayed,” Shim said in a statement on Saturday.
The DAP organizing secretary also stated that the former minister was urged to approve the eviction notices in multiple occasions by related parties.
“He did not agree with that and he had never approved any eviction notices as he knew how iconic Wisma Kosan is.
“It played an important role in many’s childhood, especially those who studied nearby.
“Phoong stated before that he would never approve any eviction notices unless the majority members of Kosan voted for it in the formal AGM,” said Shim.
The eviction was to make way for the joint venture (JV) development between Kosan and Harmoni Bumiria Sdn Bhd involving 1.85 acres of land to build a commercial building comprising retail lots and service suites.
“I am saddened and shocked by the sudden notice of eviction issued to all stakeholders in Wisma Kosan.
“This is too soon and it shall be delayed until Kosan conduct its annual general meeting to discuss on the development project,” he said.
Shim added Phoong also consulted professional legal experts to look into alternatives, including termination of the joint venture agreement.
“The joint venture agreement was signed by the late Datuk Tawfiq Titingan, former Sabah Youth and Sports Minister cum former chairman of Kosan on the 24th of August in 2015.
“Phoong consulted various lawyers regarding the agreement and could Kosan terminate the agreement signed with Harmoni Bumiria Sdn Bhd.
“It was not only one piece of land in Likas but also Kosan’s land in Petagas was included,” said Shim.
The former political secretary stressed that a dispute arose while members of Kosan found out about the agreement continue to proceed without consensus.
“The main dispute is that the agreement was never passed in any AGMs of Kosan. The members are unhappy as they felt sidelined because they do not think that they would gain from the agreement.
“The members felt jeopardized as agreements are made behind their backs. The members felt unhappy too as they do not gain from the agreements, this is what frustrates the majority members of Kosan,” said Shim.
According to the agreements, if Kosan cannot fulfill its duty mentioned clearly in the agreements, they would have to compensate the developer.
“Kosan is legally bound as the agreement is valid and enforceable. Phoong has been looking into alternatives on whether is there a possibility to terminate the contract.
“He also looked into the possibility of a supplementary agreement to maximize and safeguard the interest of Kosan and the members.
“Phoong would never allow any companies to harm or jeopardize the benefits of Sabahans and that is why he proposed that the agreement must be discussed thoroughly and be voted at the next AGM,” said Shim.
The chairmanship was only symbolic but Phoong strived to ensure integrity was upheld.
“On 18th of February 2020, an EGM was held under the instruction of Phoong to put the agreement to test. The results of the voting were 178 against 257 votes. It was clear that majority members disagree to proceed with the original JV agreement.”
Amid the first movement control order, Phoong continued to seek other resolutions to ensure that the issue would come to an end.
“Kosan would possibly compensate Harmoni Bumiria Sdn Bhd for termination. However, Phoong was decisive on terminating the agreement involving the Petagas land of Kosan.
“He believed that democracy should always be upheld and Kosan’s interest should be decided by its members and for the Wisma Kosan land in Likas, that’s why Phoong proposed it to be tabled in the next AGM.”
Shim added in Phoong’s 14-month term, he tried to reform Kosan to reset it back to the right track.
“We saved a lot of money by reforming the purchases of Kosan and a lot of unnecessary expenses were reduced.
“He even surrendered all allowances and privileges that were entitled for the chairman. He believed that these were unnecessary.”
Phoong always stood by the spirit that all decisions must be made through the AGM, including approval for eviction notices.
“Phoong continues to believe that this issue could be resolved by pouring more effort to communicate to the members. I second his idea that every decision regarding this JV agreement must be discussed and voted in the next AGM.
“Only by upholding transparency, democracy and accountability could resolve this long-term issue once and for all,” said Shim.
Parti Warisan Sabah has questioned if another piece of state government land has been given to private developers, at the expense of thousands of Sabahans.
In a statement, Warisan Kota Kinabalu Branch chief Samuel Wong said his office received complaints regarding the eviction notice issued to tenants at Wisma Kosan without proper eviction notice.