From left, Tham, Chong, Liew, Tan and Cheoh at the press conference after SUCCC’s AGM.
KOTA KINABALU: The proposed RM300 million Wisma Tiong Hua project, a joint venture (JV) project between landowners Sabah United Chinese Chambers of Commerce (SUCCC) and The United Sabah Chinese Communities Association of Kota Kinabalu (USCCAKK) and developer Arah Permai Sdn Bhd, was much delayed because the developer keeps making new demands which the landowners do not agree on.
USCCAKK has decided to revoke Arah Permai’s rights to develop the project through legal avenue, whereas SUCCC on Sunday expressed its desire to resolve the matter amicably instead of hauling the issue to court.
SUCCC president Tan Sri Andrew Liew Sui Fatt said that to the media after chairing the chamber’s Annual General Meeting (AGM) via video conferencing here on Sunday.
Earlier, USCCAKK in its AGM had passed a motion to appoint Jayasuriya Kah & Co to revoke Arah Permai’s rights to develop the project, unless the developer agreed to its terms and conditions, including to provide the landowner with RM16 million worth of property if the building was heightened from 16 to 22 storeys, in addition to the ownership of the RM40 million hall and 40 per cent of the car park as per the original JV contract.
USCCAKK also demanded the developer to pay the land conversion premium of RM8,811,450; RM1 million in cash to the association; and RM40 million as bank guarantee for using the land title as mortgage to secure financing.
USCCAKK president Datuk Susan Wong Siew Guen said the Wisma Tiong Hua project had yet to reach a consensus mainly because the developer kept changing his mind and made new demands, including to amend the agreement signed in 2013.
In response, Liew said the new Executive and Supervisory Committee of SUCCC would discuss the next course of action pertaining to the project.
“SUCCC will restructure the building committee and the next step will be decided by the new Executive and Supervisory Committee members.”
On USCCAKK’s resolution, Liew said SUCCC respected the decision of the association but the chamber hoped to resolve the matter amicably.
He said legal action would be the last resort for SUCCC.
Nevertheless, he explained that the delay in commencing the project was because the developer has come up with new demands again and again, which the chamber found hard to accept.
But he is confident that the JV plan could be settled amiably.
Liew also reiterated that since he took over the helm of SUCCC, he has successfully extended the Wisma Tiong Hua project for another 99 years starting from 2019, while the developer had agreed to pay the land conversion premium that amounted close to RM10 million.